The largest cryptocurrency exchange in the United States faces a lawsuit for its sale of the XRP crypto asset.
In a lawsuit filed in federal court in San Francisco, California, plaintiff Thomas Sandoval alleges that Coinbase sold XRP knowing that cryptocurrency is security, not a commodity.
He is seeking damages for the commissions the exchange collected from him and other Coinbase customers, Bloomberg reports.
“Until the end of the month, Coinbase sold the XRP token, the value of which was entirely tied to the success or failure of Ripple Co. and the management efforts of its executives.
Indeed, Ripple Co.’s survival as a business entity depended on its sale of unlicensed XRP securities to the public to fund its business activities. “
In a statement released this week, Coinbase said it was suspending trading in XRP as Ripple faces a lawsuit by the US Securities and Exchange Commission (SEC) for its sale of the crypto asset. The SEC says the payments processor, which owns the lion’s share of XRP, violated federal securities laws by selling the digital asset without registering it as security.
“In light of the SEC’s lawsuit against Ripple Labs, Inc., we have made the decision to suspend pairs from XRP trading on our platform.
Trading will not reach the limit until December 28, 2020 at 2:30 p.m. PST and will be fully suspended on Tuesday, January 19, 2021 at 10:00 a.m. Pacific Standard Time. “
Don’t Miss a Beat – Subscribe to receive crypto alerts via email straight to your inbox
follow us on Twitter, Facebook and Telegram
Disclaimer: Opinions expressed in Daily Hodl are not investment advice. Investors should do due diligence before making high risk investments in Bitcoin, cryptocurrency, or digital assets. Please note that your transfers and transactions are at your own risk and that any losses you may suffer are your responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in Affiliate Marketing.
Featured Image: Shutterstock / d1sk