Coinbase faces a lawsuit from the U.S. District Court for the Northern District of California for illegal sales of XRP. The court has accused Coinbase of violation of the unfair competition law. The main reason behind this lawsuit is that Ripple has been sued by the U.S. SEC by claiming that XRP is unregistered security. Now Coinbase is accused of selling these unregistered securities and also taking a commission from the sales. Coinbase Faces Lawsuit as It Knew XRP Is a Security Moreover, it has been revealed that the reason why Coinbase faces the lawsuit from the federal court is that it already knew that XRP is not a commodity and that it has been sold illegally. However, this cannot be justified as Ripple was recently sued regarding this only. So, it is not possible for Coinbase to know it in advance. As per the complaint, Coinbase knew that XRP is a security due to the technological integration of the firm into XRP’s nodes. Meanwhile, Ripple is completely denying all the claims made by the SEC. Instead, the firm has claimed that XRP is not a security rather it is more like an alternative to Bitcoin and Ethereum. Ripple has also challenged the SEC for these wrong accusations and currently keeping really high hopes from the Biden administration. Gaining Competitive Advantage There are several reasons why Coinbase faces lawsuits from the federal court, and the one is that it has been gaining a competitive advantage by selling XRP from other exchanges that only deal in commodities. There are claims that Coinbase won’t be in trouble because of the lawsuit as it has not been filed on any strong grounds. This lawsuit will most probably fall as it consists of a lot of issues and there won’t be any huge risk to Coinbase.
The post Coinbase Faces Lawsuit from California Court for Illegal XRP Sales appeared first on Cryptoknowmics-Crypto News and Media Platform.
from Live Crypto News – Cryptoknowmics-Crypto News and Media Platform
