Coinbase Is Under Legal Siege When Investors File A Lead Plaintiff Motion

During cryptocurrency exchange Coinbase’s continuous legal difficulties, investors who purchased the company’s stock have been reminded of the deadline to submit a lead plaintiff motion in a securities class action lawsuit against the company.

In a press statement published on August 31, investors’ rights law firm Bernstein Liebhard stated that the deadline applies to investors who purchased Coinbase shares between April 14, 2021, and July 26, 2022.

The class action complaint was filed in the United States District Court for the District of New Jersey, where Coinbase is accused of breaching the Securities Exchange Act of 1934. Notably, the lead plaintiff has until October 3, 2022, to represent the party acting on behalf of other class members in directing the case.

The lawsuit claims that the exchange made false and deceptive assertions about its company, operations, and compliance rules.

Some issues at stake include Coinbase’s ownership of client Bitcoin, which may be susceptible to bankruptcy proceedings. Customers would be recognized as the exchange’s unsecured creditors in this situation.

This comes as more cryptocurrency companies, including Coinbase, struggle to maintain corporate operations. Notably, lending platform Celsius has declared bankruptcy while holding customer payments.

At the same time, the exchange is under fire for allowing consumers to trade in assets that should be registered as securities according to Securities and Exchange Commission criteria. As a result, the lawsuit claims that Coinbase’s actions threatened the company with regulatory and governmental investigation.

The exchange is under SEC investigation for allowing US investors to trade digital assets that should have been registered as securities in an unreported way. Whether it’s illegal or not.

The number of lawsuits filed against Coinbase has increased since the probe began, focusing on the exchange’s business practices.

At the same time, the corporation has been rocked by insider trading charges. Ishan Wahi, Coinbase’s former global product manager, has pleaded not guilty to two counts of conspiracy to conduct electronic fraud.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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