Cryptocurrency exchange giant in the US, Coinbase, is facing a class action lawsuit over allegedly receiving commissions from illicit XRP sales. Currently, Ripple and its XRP token are embroiled in their own legal battle with the SEC which is calling the coin a security.
According to legal papers, The plaintiff, Thomas Sandoval, alleges that Coinbase knew that XRP was a security under federal securities laws but chose to continue to offer the token to its customers and charge commissions from traders.
This, according to the plaintiff, meant Coinbase gained “an unwarranted competitive advantage.”
There has been no response publicly from Coinbase, although the exchange has announced that amidst the SEC lawsuit with Ripple, that it would be delisting the asset soon.