Coinbase Facing a Customer Lawsuit in New York

Customers of Coinbase (COIN) are accusing the company of illegally selling securities without being registered to do so.

Coinbase had told U.S. District Judge Paul Engelmayer that it did not qualify as a "statutory seller" but that did not go over well with him due to the fact customers of Coinbase solely interact with Coinbase leading to the conclusion they were in fact a seller. 

Coinbase continues to claim that they do not offer or sell any sort of securities on its exchange.

What's Next?

It appears that Coinbase is at the beginning of a long race until this lawsuit ends. Not only are upset customers suing but so is the U.S. Securities and Exchange Commission. Due to crypto being such a grey area this lawsuit will clear up a lot of info.

Should You Invest?

As always, do your own research. I think investing in COIN is a risk but there is potential to see good rewards. Yes, they are being sued which does not sound good, but the lawsuit is not over. Back when stocks and other securities were made, crypto was obviously not included with that just because the technology was not there yet. If Coinbase is able to find a fault in the system, which would be based on the hope that digital tokens are not regulated securities, it may be beneficial for crypto exchanges around the world.