Cryptocurrency exchange Coinbase faces class action lawsuit for ‘illegal’ sale of Ripple’s XPR

According to the latest reports, a customer recently stated in a proposed class-action lawsuit against the Coinbase crypto exchange for collecting commissions, even though Coinbase knows that the cryptocurrency Ripple (XRP) is a security and not a Commodities still choose to “illegal” sell the currency.

This week, Coinbase said it would stop selling Ripple to the public. Earlier, the US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple, claiming that it sold more than $1 billion in the world’s third-largest cryptocurrency, Ripple, without registering with the agency, misleading investors. At the same time, other exchanges also suspended sales of Ripple to American customers.

The lawsuit occurred two weeks after Coinbase, the largest cryptocurrency exchange in the United States, applied for listing. It is reported that Coinbase’s application for listing will be the first U.S. initial public offering (IPO) related to encryption technology, and it is also a key watershed for the encryption technology industry to gain mainstream recognition. At such a historical moment, the transaction price of Bitcoin hit a record high, almost reaching 29,000 US dollars.

In a petition filed in the Federal Court of San Francisco, Thomas Sandoval (Thomas Sandoval) asked Coinbase to compensate him and other consumers for the Ripple commission paid to the trading platform.

He stated in the complaint: “Coinbase did not sell Ripple until late this month. Its value is entirely related to the success or failure of Ripple Co. and the management work done by its executives. In fact, Ripple is an entity. Existence depends entirely on selling unlicensed Ripple to the public to fund its business operations.” As of now, Coinbase has declined to comment on the allegations.

It is reported that the US Securities and Exchange Commission stated in July 2017 that companies that raise funds through the sale of digital assets must comply with federal securities laws. A Ripple executive said this month that the company will challenge the SEC’s lawsuit and that Ripple is a currency that does not need to be registered as an investment contract.

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