The SEC can sue Coinbase for offering unregistered securities, judge rules (2024)

FAQs

The SEC can sue Coinbase for offering unregistered securities, judge rules? ›

US District Judge Katherine Polk Failla ruled that under federal securities laws, “the SEC has sufficiently pleaded that Coinbase operates as an exchange, as a broker, and as a clearing agency under the federal securities laws, and, through its Staking Program, engages in the unregistered offer and sale of securities.”

Cases Follow SEC Suit Against Coinbase

The SEC has an open lawsuit against Coinbase related to the alleged operation of an unregistered securities exchange.

Zoom in: The conservative-led court upheld the Ninth Circuit court's in Coinbase, Inc. v. Suski, which denied Coinbase's motion to compel arbitration. Flashback: Coinbase held a dogecoin sweepstakes with prizes valued at up to $1.2 million.

The court will want to know why you are suing Coinbase, how much are you suing Coinbase for, and finally how you calculated the amount you are suing Coinbase for. You will need to search for the correct legal name (legal entity name) Coinbase uses in your state on the Secretary of State website for your state.

“The Court finds that the SEC adequately alleges that Coinbase, through its Staking Program, engaged in the unregistered offer and sale of securities,” Failla wrote.

Judge Katherine Polk Failla, of the District Court for the Southern District of New York, scheduled a hearing on short notice Thursday after SEC attorneys asked her to block a Coinbase subpoena last month directed at Gensler.

Under the federal securities laws, a company may not offer or sell securities unless the offering has been registered with the SEC or an exemption to registration is available.

All transactions made with cryptocurrency are direct peer-to-peer payments from the customer to the merchant. This means that once a payment is sent, there is no way for Coinbase to reverse the transaction or reclaim funds on your behalf.

If you have a question or complaint, please first contact the consumer assistance division of Coinbase at https://help.coinbase.com or (888) 908-7930, or at its mailing address: 1350 Ave of the Americas, Fl 2 # 1143, New York, NY 10019.

You can sue Coinbase in small claims court. If you choose this you will be asked to attend court hearings and pay court fees to get started. You can also use consumer arbitration. This is something laid out in your contract with Coinbase, found in the small print of the user agreement.

What is the class action lawsuit against Coinbase? ›

A class-action lawsuit against Coinbase was recently filed by a serial crypto litigator on behalf of its customers, alleging the exchange sells unregistered securities and operates as an unlicensed broker/dealer.

You can recover funds to most self-custodial wallets, including Coinbase Wallet. During the recovery process, you'll connect your owned self-custodial wallet. Only certain assets are eligible for recovery. Start by attempting the recovery.

The SEC had charged Coinbase with acting as a national securities exchange, a broker and a clearing agency with respect to transactions in thirteen identified crypto-assets, which the SEC contended were “securities” as understood under federal securities law, in violation of Sections 5, 6,15(a) and 17A(b) of the ...

The Securities and Exchange Commission today charged Coinbase, Inc. with operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency. The SEC also charged Coinbase for failing to register the offer and sale of its crypto asset staking-as-a-service program.

The court went against the U.S. crypto exchange on its latest, highly technical arbitration dispute, but it wasn't addressing anything significant about the digital assets space. Coinbase took a loss in its latest Supreme Court argument on a very narrow point about arbitration.

The Securities and Exchange Commission charged Coinbase, Inc. with operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency. The SEC also charged Coinbase for failing to register the offer and sale of its crypto asset staking-as-a-service program.

The company has also come under fire for its unclear policies. According to an SEC complaint, Coinbase has made billions of dollars unlawfully facilitating the buying and selling of crypto asset securities.

The Court granted judgment in favor of Coinbase on the SEC's claim that Coinbase acts as an unregistered broker through its wallet service in violation of Section 15(a) of the Exchange Act.

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