Coinbase Faces New Lawsuit In California For Selling XRP Tokens

Coinbase faces new lawsuit in California for selling XRP tokens and the lawsuit was filed by plaintiff Thomas Sandoval alleging that the exchange sold the coins knowing that the cryptocurrency is a security and not a commodity as we can see more today’s coinbase news.

In a lawsuit filed in the federal court in San Francisco California, Thomas Sandoval who is the plaintiff in the lawsuit alleged that Coinbase sold XRP despite knowing that the cryptocurrency is a security and not a commodity. He seeks damages for the commissions that the exchange collected from him and other users as well.

“Indeed, Ripple Co.’s survival as a corporate entity depended on its sale of unlicensed XRP securities to the public to fund its business operations.”

In a statement released an earlier week, Coinbase explained that it is suspending the trading of XRP as Ripple faces a lawsuit from the US Securities and Exchange Commission over the sale of the crypto asset. SEC claims that the payment processing company that owns the lion’s share of XRP violated the federal securities laws by selling the digital assets without registering them as a security.

 “In light of the SEC’s lawsuit against Ripple Labs, Inc, we have made the decision to suspend the XRP trading pairs on our platform. Trading will move into limit only starting December 28, 2020 at 2:30 PM PST, and will be fully suspended on Tuesday, January 19, 2021 at 10 a.m. Pacific Standard Time.”

As reported previously, While Ripple got destroyed by the SEC lawsuit that was launched a week ago concerning its XRP token, now, the major US exchange Coinbase got sued for receiving commissions from the illegal XRP token sale. According to the court documents, the plaintiff Thomas C Sandoval, filed the class-action lawsuit against the San Francisco-based giant alleging that the exchange sold XRP as unregistered security and received commissions. The exchange giant revealed that it will stop trading the token in January 2021 but Coinbase filed with the SEC to go public with the initial public offering which was valued at a whopping $28 billion. With the latest development regarding Ripple, US Exchanges that listed XRP could now become subject to a lawsuit if the courts decide to side with the SEC against Ripple.