In both cases, prosecutors allege that Coinbase provided fraudulent and misleading statements about the company’s business, operations, and compliance efforts during the semester.
Coinbase is now facing increased scrutiny from regulators, and the company has become the target of several lawsuits.
The San Francisco-based cryptocurrency exchange, which is currently under investigation by the US Securities and Exchange Commission (SEC), is facing two additional legal claims from two law firms.
On Thursday, the New York-based law firm Brager Eagle & Square general He sued Coinbase for making misleading claims about its trading practices.
It is also suing Pomerantz LLP Presenter against the exchange, claiming that it is entitled to recover losses incurred as a result of the defendant’s violation of federal securities laws. This lawsuit was filed to compensate the plaintiffs.
In both complaints, the plaintiffs allege that between April 14, 2021 and July 26, 2022, Coinbase provided fraudulent and misleading statements about the company’s business, operations, and compliance efforts.
According to the complaints, Coinbase failed to disclose that customers’ cryptocurrency was deposited with Coinbase, so it could become part of a bankruptcy estate, treating customers as unsecured general creditors of the company.
Furthermore, Coinbase allegedly refused to disclose that it allowed US citizens to trade in digital assets that, despite their knowledge and consent, would have required SEC registration as securities.
According to the lawsuits, Coinbase’s public statements as a result of previous actions have at all times been materially false and misleading.
Coinbase has been involved in many court cases and controversial situations in the past. The two new lawsuits come as Coinbase is under investigation by the SEC for trading unregistered securities. Former Coinbase Global Product Manager Ishan Wahi has been charged with insider trading in another lawsuit.
But earlier this month, Wahye pleaded not guilty in federal court in Manhattan to two counts of conspiracy to defraud.
Did you read it? Bloomberg Intelligence: Bitcoin could act as a government bond
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