• Reports say that US crypto exchanges could face a class action lawsuit due to illegal sales of unregistered securities.
• Leading securities lawyer Tom Grady is preparing potential litigation against America’s largest crypto companies, including Coinbase, Robinhood and Kraken.
• Congress has yet to officially classify digital assets as securities, so regulators such as the SEC have been taking things into their own hands.
US Crypto Exchanges Could Face Class Action Lawsuit: Reports
It appears that the war on crypto in America is heating up, with reports indicating that exchanges could be the next targets for regulatory wrath. According to a March 9 Fox Business report, leading securities lawyer Tom Grady is preparing for potential class action litigation against major American crypto companies, including Coinbase, Robinhood and Kraken.
Allegations of Illegal Sales of Unregistered Securities
Grady believes these companies may have violated the law by selling unregistered securities to retail investors, who may now be entitled to recover their losses from these purchases. In a press release shared with the outlet, Grady stated: „We believe Coinbase, Robinhood, and other exchanges have violated the law.“
Digital Assets Yet To Be Officially Classified
The issue of whether or not digital assets should be classified as securities remains unresolved – Congress has yet to make an official ruling on this matter. Consequently, regulators such as the SEC have been taking matters into their own hands in order to protect retail investors from any potential scams or frauds that may arise in this sector.
Class Action Lawsuit Could Have Far-Reaching Implications
Should a class action lawsuit be successful against these exchanges it could have far-reaching implications for the entire cryptocurrency industry in the United States – something which many would argue is already under threat from government regulation.
Seeking Clients Who Lost Money From Crypto Investments
As well as preparing for possible class action litigation against America’s top crypto companies, Grady also seeking out clients who have lost money through investments made on these platforms in order to represent them in court if necessary.