Coinbase Hit With Two More Lawsuits

Coinbase, the number one crypto exchange in the United States, is again making headlines today due to another set of lawsuits. Each claimed that the corp made “false and misleading statements” concerning its business operations.

The pair of suits allege that the company's investors lost significant capital due to the current SEC investigation looking into whether Coinbase offered assets that should have been classified as securities.

Bragar Eagel & Squire in the U.S. District Court of New Jersey has filed the first suit, with the law firm acting on the behalf of all persons and entities” who bought the alleged securities between April 14, 2021, and July 26, 2022.

The second suit comes from San Diego-based Robbins Geller Rudman & Dowd LLP, which is self-described as “one of the world’s leading complex class action firms” and covers the same class period.

The two lawsuits use the exact wording predominantly, proclaiming Coinbase “knew or recklessly disregarded” that the assets they allowed to be traded should have been registered as securities, as well as the potential for its customers to be held as general unsecured creditors, in the case of the exchange's bankruptcy.

On May 10th Coinbase submitted a 10-Q filing alongside its Q1 earnings report in which the San Francisco-based firm divulged that the crypto assets it held “may be considered to be the property of a bankruptcy estate.”

The two class action suits even point toward the current Bloomberg report that detailed the SEC probe into the exchange over allegations of the trading of unregistered securities, which led to the price of Coinbase stock to fall more than 26% on the first occasion, and an added 21% on the second, causing considerable damage for investors.

Since the beginning of the year, Coinbase stock has been down 64.59% but has surged 47% over the past five days.

Yesterday the announcement of a partnership between BlackRock and Coinbase led to the rise in the exchange prices. The partnership will see the $20 trillion asset manager extend its institutional trading services to include crypto.

“The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Coinbase securities during the Class Period to seek appointment as lead plaintiff,” reads the Robbins Geller Rudman & Dowd filing.

Bragar Eagel & Squire, in turn, requested those who “purchased or otherwise acquired Coinbase shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims,” to reach out to the firm.