Coinbase, the largest cryptocurrency exchange in the United States, is going through a delicate situation in the country as it not only filed a lawsuit filed by the SEC, but also has to sue the New Jersey Department of Securities by sending its protection distribution to the consumer.
In a note published last Tuesday (6), the public body is asking Coinbase to cease operations, following allegations of securities fraud.
The New Jersey Department of Securities is a government agency, which means the process parallels the one filed by the SEC. With this, Coinbase is piling up accusations in the US after announcing in recent months that it could move its headquarters out of the country.
The lawsuit filed by the New Jersey consumer protection agency seeks a $5 million judgment against Coinbase, i.e. R$25 million.
Sued again, Coinbase will have to explain in a lawsuit filed by the New Jersey Department of Consumer Protection
O Securities Office determined that Coinbase violated the Securities Act by offering unregistered products through its participation offers to residents of New Jersey without first registering such offers.
The agency reminds that the action does not prohibit Coinbase from offering participation bonds, if it complies with New Jersey law.
According to Shirley Emehelu, Executive Assistant Attorney General, the cryptocurrency market is not free for everyone.
“The cryptocurrency securities market is not open to everyone, where companies can set their own rules. Such companies pay the rewards but are less likely to deal with the risks of investing in crypto, and through this action we are ensuring they comply with our rules.”
Cari Fais, acting director of the Consumer Affairs Department, said Coinbase broke the rules, but the “government will continue to protect consumers.”
“The rules are clear. Anyone selling securities in New Jersey must register and comply with the state’s Securities Act. The Bureau of Securities will continue to protect investors by monitoring the market to ensure everyone is following the rules , especially when it comes to the ever-evolving digital asset market.”
Several US states teamed up to investigate Coinbase
The action is the result of a multi-state task force investigation by state securities regulators. Led by California, it also includes several other states.
The New Jersey Bureau’s investigation was conducted by investigator Delfin Rodriguez. The agency is represented by Deputy Attorney General Evan Showell.
In a note, the Bureau of Securities said there were 145,000 Coinbase investors living in New Jersey as of March 2023. However, more than 3.5 million U.S. investors have no protection from the FDIC, the U.S. FGC or the SEC, the agency said in the filing of the suit.
If a Coinbase investor feels wronged, he can go to the authorities and file complaints, the consumer protection body recalls.
It is worth remembering that after the lawsuits against Coinbase and Binance in the United States, several politicians in the country came forward publicly to defend the tight regulation of the market.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
