Oregon's Attorney General has initiated a lawsuit against Coinbase, one of the United States' largest cryptocurrency trading platforms. According to the lawsuit, Coinbase violated the Oregon Securities Law. It further claims that the company operated an exchange through which unregistered securities were even sold.
Overall, the lawsuit focuses on an important allegation. It claims that Coinbase allowed Oregonians to purchase unregistered cryptocurrencies, putting them at risk of losing serious amounts of money on their investments. Without the regulatory supervision of registered securities, these digital assets have caused tremendous harm to investors’ wallets.
The lawsuit’s focus on the Internet Computer Protocol (ICP) as a focal point of its action is illustrative. It calls ICP an unregistered security that Coinbase sold. Following its debut on the network, ICP experienced a steep price crash. One month later, it had crashed from $700 to $72. Today, ICP is trading at about $7, representing a loss of almost 99% from its starting price value.
The law suit claims that Coinbase was the primary actor in the unlawful sale of ICP to Oregonians. The blockchain company received approval from the popular listing platform for its coin ICP to be free traded on its platform. It onboards buyers and sellers, administers trades, and even markets the cryptocurrency to Oregonians.
The Securities and Exchange Commission (SEC) had already labeled ICP as an unregistered security. This discovery reinforces the alarm bells that were sounded in Oregon’s lawsuit.
You don’t go in for a medical procedure without knowing the risks. It’s the same for everyday folks who want to invest in cryptocurrency. - Rayfield
After building trust with Oregon consumers, Coinbase sold high-risk investments without them being properly vetted to protect consumers. - Rayfield
