The ongoing battle between the San Francisco-based blockchain payments firm Ripple and the United States Securities and Exchange Commission (SEC) has also put in trouble the leading San Francisco-based digital currency exchange Coinbase as well. Reportedly, the crypto exchange has been struck hard with legal filing which alleges that the company has made commissions by selling Ripple’s native digital currency XRP as an unregistered security.
Coinbase To Face Class Action Lawsuit
Amid the US SEC and Ripple’s legal battle, the plaintiff Thomas C. Sandoval has filed a complaint against Coinbase in the Northern District Court of California. In the complaint, the plaintiff said that the crypto exchange has allegedly conducted the sale of XRP while knowing the status of the coin as unregistered security and has made commissions from this sale.
Referred to as the Class Action Lawsuit, the complaint alleges that the digital currency exchange has violated the Unfair Competition Law (UCL) of California by going for the sale of XRP as an unregistered security.
While talking about in the complaint how the crypto exchange made commissions through this sale, a resident of Missouri claimed that he bought an undisclosed amount of XRP for two times on the trading platform of the Coinbase exchange and said that he paid a commission to the crypto exchange in return. As per the complaint, the defendant was well aware of the fact that Ripple’s native digital currency was security. And despite knowing this fact, the crypto exchange stepped forward with the sale of XRP, the plaintiff said.
The SEC’s lawsuit against Ripple has wrapped up the US exchange Coinbase. And there is likely a chance that many other United States-based digital currency exchanges that supported XRP trading may also face the consequences of this lawsuit.
Meanwhile, the fourth-ranked cryptocurrency XRP continues to face the heat of the fight between SEC and Ripple as several major digital currency exchanges now have announced the delisting of XRP. The most recent to announce the halt of the trading of XRP is the major brokerage firm eToro. Prior to this, Binance US and Genesis Trading also revealed plans to delist XRP from their trading platforms.