The lawsuit against Coinbase, filed in the United States District Court for the Northern District of California, San Francisco Division by plaintiffs from California and Florida, alleges that the exchange sold digital tokens such as SOL, MATIC, and NEAR, which they argue should be considered securities according to state laws. They assert that this violates legal regulations on securities and raises questions about Coinbase's compliance. Additionally, Coinbase's user agreement classifies its exchange service as a Securities Broker, adding complexity to the legal situation.