By Solomon Odunayo
As a recent report has it, Coinbase, the largest cryptocurrency exchange in the United States has been sued over receiving commission from the illicit sales of the digital token XRP alleged to be an unregistered security.
The new development containing the details of the lawsuit was shared moments ago by a user identified on Twitter as Palley.
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Captioning the screenshots of the filing, Palley tweeted, “New one count California federal court lawsuit alleges Coinbase violated state unfair competition laws by selling XRP, alleged to be an unregistered security, and taking commissions from the sale.”
New one count California federal court lawsuit alleges Coinbase violated state unfair competition laws by selling XRP, alleged to be an unregistered security, and taking commissions from the sale. pic.twitter.com/BpMZO1ulcC
— Palley (@stephendpalley) December 30, 2020
“Presumably CB will respond by moving to compel arbitration — the TOS arb clause has been upheld recently — and citing class waiver as well,” he added.
Follow this link to read the complaint.
This lawsuit is obviously bad timing for Coinbase. It’s vastly known that the crypto exchange is getting ready for its initial public offering scheduled for the coming year.
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It can be recalled that Coinbase had earlier this week announced its intention to suspend XRP trading and deposits in January 2021, following the lawsuit filed by the United States Securities and Exchange Commission (SEC) on 22nd December against Ripple, which deems XRP as an unregistered security.
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