Coinbase Sued Over Crypto XRP Commissions After SEC Pursues Ripple
- Lawsuit says exchange knew Ripple’s token was a security
- Complaint comes after SEC asserted XRP requires registration
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Coinbase Inc. knew cryptocurrency XRP was a security rather than a commodity and “illegally” sold Ripple Labs Inc.’s tokens anyway, a customer argues in a proposed class-action lawsuit over the commissions the crypto exchange collected.
Coinbase said this week it will stop selling XRP to the public after the U.S. Securities and Exchange Commission sued Ripple, alleging it misled investors by selling more than $1 billion of the virtual tokens for the world’s third-largest cryptocurrency without registering with the agency. Other exchanges are also suspending XRP sales to U.S. customers.