Meanwhile, Oregon’s Attorney General has filed a lawsuit against Coinbase. As you may know, it’s the largest cryptocurrency trading platform in the United States and … The lawsuit alleges that Coinbase violated the Oregon Securities Law. It claims that the firm functioned as an exchange helping to sell unregistered securities.
The lawsuit claims Coinbase facilitated the sale of unregistered cryptocurrencies to Oregon residents, resulting in significant financial losses for investors. Unregistered securities are rife with dangerous risks to investors due to the absence of regulatory oversight and transparency.
Coinbase is impossible to ignore in today’s cryptocurrency markets. It accepts cryptocurrencies for trading, matches buyers with sellers and handles cryptocurrency trade executions. The platform takes steps to actively market these new digital assets to Oregonians.
Yet Internet Computer Protocol (ICP) has now been listed by the Securities and Exchange Commission (SEC) as an unregistered security. Following its launch on Coinbase, ICP went on to suffer a catastrophic price drop, falling from $700 to $72 in less than a month. Today ICP is trading at about $7, meaning its price has plummeted almost 99% from its original peak.
The lawsuit claims Coinbase of violating state laws by not adequately protecting consumers from the risks related to these unregistered securities.
"You don’t go in for a medical procedure without knowing the risks. It’s the same for everyday folks who want to invest in cryptocurrency," - Rayfield
This legal action underscores the growing scrutiny of cryptocurrency exchanges and the need for regulatory compliance to safeguard investors from potential financial harm.
"After building trust with Oregon consumers, Coinbase sold high-risk investments without them being properly vetted to protect consumers," - Rayfield
This legal action underscores the growing scrutiny of cryptocurrency exchanges and the need for regulatory compliance to safeguard investors from potential financial harm.
