• Leading securities lawyer Tom Grady is reportedly preparing to file a lawsuit against top U.S. crypto exchanges Coinbase, Robinhood, and others for violating state and federal securities laws.
• The move follows Grady’s investigation into these exchanges’ operations and their potential violations of securities laws.
• A class-action lawsuit could result in a regulatory crackdown on the $1 trillion cryptocurrency industry which has already been rocked by scandals and seen its value plummet.
Lawyer Prepares to Sue Crypto Exchanges
Leading securities lawyer Tom Grady is reportedly preparing to file a lawsuit on behalf of retail investors against top U.S. crypto exchanges Coinbase, Robinhood, and others for allegedly violating state and federal securities laws. The law firm CryptoLawyers.org based in Tampa, Florida is also seeking clients who suffered losses purchasing cryptocurrencies on these platforms to share information about their investments.
SEC’s Actions Against Crypto Companies
The debate over how to classify digital assets has raged for a long time. In 2017, the Securities and Exchange Commission (SEC) took action against several crypto companies for selling unregistered securities. SEC Chairman Gary Gensler has previously suggested that the majority of crypto tokens are securities, with the exception of bitcoin. Last year, the SEC charged executives of Ripple with selling the XRP token to help build out its platform as well as filing lawsuits against cryptocurrency exchanges Gemini and Kraken for the sale of unregistered securities products to customers last month.
Potential Regulatory Crackdown in Crypto Space
A class-action lawsuit could result in a regulatory crackdown on the $1 trillion cryptocurrency industry, which has already seen its value plummet and has been rocked by scandals such as troubled cryptocurrency bank Silvergate announcing that it is liquidating assets and ceasing operations among other high-profile companies filing for bankruptcy like FTX being indicted for allegedly running a Ponzi-like scheme through its crypto exchange before implosion and bankruptcy .
Publicly Traded Companies Disclosure Requirements
Unlike FTX, Coinbase and Robinhood are U.S.-based publicly traded companies that are required to meet SEC disclosure requirements according to Grady who seeks legal action against them if they do not comply with proper disclosures about risks associated with trading cryptocurrencies on their platforms or transacting unregistered digital coins without any proper notification or warning regarding such risks provided by those exchanges before any trades occur between customers & them .
Taking legal action against these top U.S.-based cryptocurrency exchanges may lead to significant consequences including potential regulatory crackdowns which could have an effect on entire industry as many investors could be exposed & suffer huge losses due to misleading information provided by those firms & lack of proper disclosures about potential risks associated with trading or owning digital coins .