Coinbase is currently facing increased regulatory scrutiny and the company is now the target of numerous lawsuits. The San Francisco-based cryptocurrency exchange, which is currently under investigation by the US Securities and Exchange Commission (SEC), is now facing two additional lawsuits from two law firms.

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On Thursday, New York law firm Bragar Eagel & Squire disclosed that he will sue Coinbase for misleading statements about his business practices. Pomerants LLP also filed lawsuit against the exchange alleging that it is entitled to compensation for any losses incurred as a result of the defendant’s violation of federal securities laws. This lawsuit was filed to compensate the plaintiffs.

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In both complaints, the plaintiffs allege that Coinbase made fraudulent and misleading statements regarding the company’s business, operations, and compliance efforts between April 14, 2021 and July 26, 2022. According to the complaints, Coinbase did not disclose that the client’s cryptocurrency was stored in escrow. to Coinbase by making it part of a bankruptcy estate in which clients will be treated as general unsecured creditors of the company.

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In addition, Coinbase has reportedly refused to disclose that it allows US citizens to trade digital assets that, despite its knowledge and complacency, require SEC registration as securities. As such, the lawsuits allege that Coinbase’s public statements have always been largely false and misleading as a result of prior actions.

Coinbase SEC investigation could have ‘serious and chilling’ implications: lawyer

Coinbase has been involved in several court cases and controversies in the past. Two new lawsuits come as the Securities and Exchange Commission is investigating Coinbase for alleged trading in unregistered securities. Ishan Wahi, a former global product manager at Coinbase, is being charged with insider trading in a separate lawsuit. However, earlier this month Wahi pleaded not guilty to two counts of conspiracy to use electronic communications in a Manhattan federal courtroom.