Coinbase faces a new class-action lawsuit for allegedly creating its business model based on deceit. The plaintiffs claim that the exchange admitted in its user agreement to be a securities broker, yet it failed to comply with securities laws. Brett Maggard, Eduardo Cordi, Edwin Martinez, Gerardo Aceves, Thomas Fan, and Tiffany Smoot, who are Coinbase customers, are involved in bringing this lawsuit forward.

Regarding its IPO in 2021, Coinbase disclosed that it was offering securities despite being unregistered, which is a key issue in the case. Tokens like Solana (SOL), Polygon (MATIC), Near Protocol (NEAR), Decentraland (MANA), Algorand (ALGO), Uniswap (UNI), Tezos (XTZ), and Stellar (XLM) sold by Coinbase are considered securities in question. The plaintiffs are seeking remedies such as rescission, statutory damages, and injunctions.

Although a similar lawsuit was previously filed against Coinbase, the exchange was successful in defending its position in a court ruling that secondary cryptocurrency sales do not breach the Securities Exchange Act. This legal trouble with the law enforcement bodies like the Securities and Exchange Commission (SEC) does not deter Coinbase's financial performance, with Q1 of 2024 showing strong revenue growth despite these challenges. Transaction revenue from customers spiked by 99% compared to the previous quarter, amounting to $935 million, while institutional transactions saw a 133% increase to reach $85 million.