Coinbase is facing a new class-action lawsuit due to claims that the company's entire business model is based on deceit. The lawsuit, filed in the US District Court of California, accuses Coinbase of admitting in its user agreement to being a securities broker, hence violating securities laws knowingly.

The plaintiffs in this case are customers of Coinbase, namely Brett Maggard, Eduardo Cordi, Edwin Martinez, Gerardo Aceves, Thomas Fan, and Tiffany Smoot. They argue that when Coinbase filed for its IPO in 2021, it acknowledged offering securities without the necessary registration.

The lawsuit also highlights various tokens offered by Coinbase that are classified as securities, including Solana (SOL), Polygon (MATIC), Near Protocol (NEAR), and others. The plaintiffs are seeking rescission, statutory damages, and injunctive relief.

Despite legal challenges, Coinbase reported strong financial results in Q1 2024, with total revenue of $1.6 billion and net income of $1.2 billion. Revenue from customer transactions surged by 99%, and institutional transactions revenue increased by 133% compared to the previous quarter. These figures come in the midst of ongoing legal battles, including the one with the US SEC, to determine the classification of tokens on the platform.