Coinbase Got Sued For Receiving Commission On The XRP Sales

US-based crypto exchange Coinbase got sued for receiving commissions on the illegal XRP sales by plaintiff Thomas C Sandoval, as we are about to find out more in today’s Coinbase news.

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.

In the lawsuit filed in the Northern District Court of California, Sandoval stated that he bought XRP twice on Coinbase before the SEC lawsuit and ended up paying the exchange a commission. However, he alleged that the exchange knew that XRP was security but still sold the token to its customers. Furthermore, the lawsuit claims that the exchange violated the California Unfair Competition Law:

 “Defendant’s actions were also “unfair” as that term used in the UCL, in that by selling XRP securities Defendant gained an unwarranted competitive advantage over digital asset exchanges that only sold commodities. As a result of Defendant’s conduct, Coinbase received commissions from Plaintiff and all other Class members.”

Furthermore, the plaintiff seeks compensatory damages, attorney fees, and other relief decided by the court. The lawsuit came after Coinbase decided to stop XRP trading on its platform. 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 billion.
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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.

Since the SEC lawsuit claimed that Ripple conducted an illegal $1.3 billion unregistered securities offering, a lot of exchanges decided to delist the token or stop trading it on their platforms. The US branch of Binance was the latest to announce that it will delist the coin and suspend all XRP Trading and deposits in 2021. However, Ripple will challenge the SEC allegations and said that the SEC is to blame for harming innocent XRP traders.