Coinbase Global and its CEO, Brian Armstrong, are facing legal action in the form of a class action lawsuit which accuses them of selling securities and engaging in violations of securities laws.

Allegations Made in the Lawsuit

The lawsuit claims that cryptocurrency assets such as Solana (SOL), Polygon (MATIC), Near Protocol (NEAR), Decentraland (MANA), Algorand (ALGO), Uniswap (UNI), Tezos (XTZ), and Stellar Lumens (XLM) available on Coinbase are considered securities. The plaintiffs in the lawsuit assert that by labeling themselves as a "Securities Broker" in their user agreement, Coinbase essentially validates the digital assets they sell as investment contracts or other forms of securities. Furthermore, the lawsuit alleges that Coinbase Earn accounts violate securities laws by advertising and endorsing high yields.

The individuals involved in the lawsuit, namely Gerardo Aceves, Thomas Fan, Edwin Martinez, Tiffany Smoot, Edouard Cordi, and Brett Maggard, are requesting full recession, statutory damages based on state laws, and injunctive relief. They have demanded a jury trial to address these allegations.