Coinbase faces new lawsuit that claims SOL, MATIC, NEAR, MANA, ALGO, UNI, XTZ and XLM are securities

Coinbase crypto exchange and its CEO, Brian Armstrong, faces a new lawsuit that claims Solana, Polygon, Near, Decentraland, Algorand, Uniswap, Tezos and Stellar Lumens tokens are securities.

This new class-action lawsuit alleges that investors were deceived into buying securities and claims the company’s business model is illegal.

According to the lawsuit filed, “Its entire business model has been built upon a lie and a
dream: the lie is that “we do not sell securities,” and the dream is that, knowing it would eventually be caught in the lie, “it is better to ask for forgiveness than permission.”

Also, “Coinbase has knowingly, intentionally, and repeatedly violated state securities laws
since it began doing business.”

“Indeed, it admits in its User Agreement that is a “Securities Broker,” that the Digital Asset Securities sold by Coinbase are “financial assets” (i.e., investment contracts or other securities under CAL. COM. §8102), that Coinbase is a “securities intermediary” (i.e., a clearing corporation or a broker other person that “maintains securities accounts for others and is acting in that capacity”), and that the Digital Asset Wallets custodially held by Coinbase are “securities account[s].”