TL;DR Breakdown
- Coinbase user files lawsuit against the crypto exchange firm for listing XRP
- Major crypto exchange firms have made plans to suspend trading Ripple token
A disgruntled customer of crypto exchange company, Coinbase, has filed a lawsuit against the firm claiming that the exchange company sold him “securities” in the guise of Ripple’s XRP token.
According to a document submitted to a court in California on the 30th of December, the plaintiff, Thomas Sandoval of St. Louis, says that Coinbase being a digital exchange has no right to sell securities.
He went on to add that the exchange firm is a commodity broker for cryptocurrencies. The lawsuit further added that the Securities and Exchange Commission (SEC) claims that Ripple’s token was a security makes Coinbase a deliberate lawbreaker.
According to the plaintiff, Coinbase had this prior information but still deliberately listed the token to gain an undue advantage over other digital asset exchanges that traded only commodities.
The plaintiff is also claiming that the crypto exchange firm had defrauded its users on a massive scale because it knew that XRP was not qualified to be labeled as a commodity. Thomas says he bought the XRP tokens in November of this year and that Coinbase knew trading in the token was a violation of their business operation, but they went on regardless.
Coinbase and other major crypto exchanges delist XRP
Coinbase, earlier this week announced that it was going to halt trading Ripple’s native token on its platform.
According to the firm, it was going to suspend all transactions concerning XRP by January 19 fully. The company added that pending, then XRP wallets would be available for deposits and withdrawals. They added that their customers would remain eligible for Spark airdrop.
Other crypto exchanges like Okcoin, Bitstamp, Binance have also announced that they were also going to suspend trading XRP on their platforms.
All of these platforms have cited the lawsuit filed against Ripple by the SEC as the reason for their actions.
