In both cases, plaintiffs allege Coinbase made fraudulent and misleading statements about the company’s business, operations and compliance efforts throughout the class period.
Coinbase is now facing increased scrutiny from regulators, with the company now becoming the target of multiple lawsuits. The San Francisco-based cryptocurrency exchange, which is presently being investigated by the United States Securities and Exchanges Commission (SEC), now faces two additional legal claims from two law firms.
On Thursday, New York-based legal firm Bragar Eagel & Squire revealed that it would be suing Coinbase for making deceptive claims about its business practices. Pomerantz LLP has also filed a claim against the exchange, alleging that it is entitled to compensation for any losses incurred as a result of the defendant’s violations of federal securities laws. This lawsuit was filed to compensate the plaintiffs.
Coinbase has been involved in several court cases and controversial situations in the past. The two fresh lawsuits arrive as Coinbase is being investigated by the SEC for allegedly trading unregistered securities. Ishan Wahi, a former global product manager for Coinbase, is being accused of insider trading in a separate lawsuit. However, earlier this month, Wahi pleaded not guilty to two counts of wire fraud conspiracy in a Manhattan federal courtroom.