Coinbase Under Fire: Oregon AG Accuses Crypto Giant of Selling Unregistered Securities

In recent times, it has become trendy in the Web3 space to criticize centralized exchanges, blockchain projects, and large cryptocurrency companies for being dishonest or lacking transparency. This type of discussion is becoming increasingly common as legal actions and public investigations are on the rise. Today, the Coinmooner team would like to share a case that highlights the importance of staying informed and cautious in the cryptocurrency world.

Oregon Attorney General Dan Rayfield has recently accused Coinbase, one of the largest U.S. crypto exchanges, of facilitating the sale of unregistered securities. He claims the company made millions in fees while many Oregon residents lost money by investing in risky products offered on the platform.

Coinbase earned the trust of local investors by offering high-risk products without proper regulatory checks. As a result, many people lost their savings. We believe the company should be held accountable

Said Rayfield when announcing a lawsuit filed on behalf of affected citizens.

Regulators Strike Back: The Rising Legal Heat on Centralized Crypto Exchanges

On the other side, Coinbase’s Chief Legal Officer, Paul Grewal, strongly criticized the lawsuit. He pointed out that it was filed on behalf of over 500,000 Coinbase users without their direct consent. According to him, this could hurt not only Coinbase but the entire crypto industry. Grewal believes that such actions erode trust in the legal system and hinder innovation in the U.S.

He also noted that the lawsuit overlooks a previous ruling by Federal Judge Analisa Torres, who determined that XRP tokens sold on the secondary market are not securities. Grewal argued that prosecutors are using outdated legal arguments that even the U.S. SEC had dropped in a similar case against Coinbase.

It’s also worth mentioning that earlier this year, in March, the states of South Carolina and Vermont dropped similar lawsuits against Coinbase. They had accused the company of offering illegal staking services and selling unregistered financial products, but after reviewing the claims, the charges were dismissed.

To wrap up, Coinmooner would like to remind everyone in the Web3 community. In a space with unclear regulations and rising threats from hackers and malicious actors, it is more important than ever to stay informed and utilize robust security tools. Only with the proper knowledge, tech skills, and careful platform choices can you keep your crypto investments safe.