Cryptocurrency exchange Coinbase, and CEO Brian Armstrong, face a new class-action lawsuit.

A group of plaintiffs from California and Florida filed a lawsuit in the U.S. District Court for the Northern District of California, San Francisco Division.

The plaintiffs — Gerardo Aceves, Thomas Fan, Edwin Martinez, Tiffany Smoot, Edouard Cordi, and Brett Maggard — allege that Coinbase’s sales of digital assets have knowingly violated state securities laws since the company’s inception.

The lawsuit claims that several tokens sold on Coinbase, such as Solana (SOL), Polygon (MATIC), Near Protocol (NEAR), Decentraland (MANA), Algorand (ALGO), Uniswap (UNI), Tezos (XTZ), and Stellar Lumens (XLM), should be classified as securities.

According to the plaintiffs, Coinbase has admitted to being a “Securities Broker” in its user agreement, suggesting that the digital asset sales on the platform may qualify as investment contracts or other forms of securities.

The lawsuit also contends that Coinbase’s Prime brokerage functions as a securities broker.

The plaintiffs are seeking full rescission of these sales, statutory damages under state laws, and injunctive relief, with the matter proceeding to a jury trial. This lawsuit bears similarities to another class-action suit alleging consumer harm from Coinbase’s sale of securities.

Coinbase, however, has pushed back, arguing that secondary sales of crypto assets do not meet the criteria for securities transactions and questioning the applicability of securities regulations in this context.

This case is separate from Coinbase’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC), which also examines whether the tokens sold on Coinbase should be treated as securities. Recently, Coinbase filed an interlocutory appeal in response to a judge’s ruling allowing the SEC’s case to proceed.

Crypto.news reached out to Coinbase for comment but has not heard back.

Coinbase faces multiple lawsuits

In a separate development, pro-crypto lawyer John Deaton has stepped in to support Coinbase in its legal battle with the SEC by filing an amicus brief.

Deaton, known for his crypto advocacy and campaign against Massachusetts Senator Elizabeth Warren, is said to be providing his services pro bono.

His involvement coincides with Coinbase’s pushback against the SEC’s allegations and its efforts to gain clarity on regulatory matters, illustrating the ongoing tensions between cryptocurrency companies and financial regulators.

In June 2023, the SEC filed a lawsuit against Coinbase, accusing the cryptocurrency exchange of operating as an unregistered national securities exchange and broker. 

The SEC claims that Coinbase traded at least 13 crypto assets that should have been registered as securities, including tokens like Solana, Cardano, and Polygon.

Separately, hundreds of Coinbase customers have sued the company over its handling of the GYEN stablecoin, which they argue was far from stable.

This lawsuit alleges that Coinbase promoted and traded the GYEN token despite being aware of its high volatility, leading to significant losses for investors.

Coinbase’s crypto staking program has also come under regulatory scrutiny. The SEC alleges that the program operates as an unregistered investment contract and security. Several U.S. states have joined the SEC’s case, accusing Coinbase of violating securities laws in connection with its staking rewards program.

Coinbase has pushed back against the regulatory crackdown. Armstrong has expressed pride in representing the crypto industry in court and has called for clearer regulations.

However, legal experts caution that the SEC’s actions could limit options for U.S. investors and increase fees as platforms turn to less-regulated markets.

These lawsuits reflect the ongoing tensions between cryptocurrency companies and financial regulators over how to classify and oversee digital assets. As the SEC intensifies its crypto enforcement, further legal battles are likely for Coinbase and other major players in the industry.

Denver Water made a splash with a throwback-inspired music video highlighting the city’s summer watering practices.

The water utility company released a music video parodying the Backstreet Boys’ “I Want It That Way,” which first made waves with its 1999 release.

The lyrics to Denver Water’s version, titled “I Water That Way,” offer catchy reminders on how best to use water to take care of your home greenery.

“Tell me why? Don’t water when it’s rainin. Tell me why? Don’t water when it’s windy. Tell me why? Don’t let your water wash away. I water that way,” read some of the lyrics on Denver Water’s website.

In the video, during one waterfront shot, Denver’s water team can be seen wearing Backstreet Boys-inspired all-white outfits, with one even sporting a white fedora.

“Look, sometimes you get an idea, and you have to see it through, no matter how much it sets you up to be ridiculed by everyone in your life,” wrote Denver Water’s Jimmy Luthye.

“I’ve wanted to make this video for a very long time. I grew up loving boy band jams and ‘I Water That Way’ is my tribute to the glory days of polished Max Martin pop hits and confusing music videos with far too much eye contact,” the post continued.

“I Want It That Way” was released in 1999 and saw success near the top of the Billboard Hot 100 chart. It was also nominated for Song of the Year at the 2000 Grammy Awards.

SEATTLE (AP) — A zebra that has been hoofing through the foothills of western Washington for days was recaptured Friday evening, nearly a week after she escaped with three other zebras from a trailer near Seattle.

Local residents and animal control officers corralled the zebra named “Shug” in the community of Riverbend, about 30 miles (48 kilometers) east of Seattle, the Regional Animal Services of King County wrote on its website.

“The zebra seemed to be in good condition despite her nearly week-long adventure in the woods,” the agency wrote.

Shug was one of four zebras that escaped as they were being transported from Washington to Montana last Sunday. The driver had taken the Interstate 90 exit for North Bend, in the Cascade mountain foothills about 30 miles (48 kilometers) east of Seattle, to secure the trailer, when the animals got loose — surprising residents and drivers as they galloped into a rural neighborhood.

Three were quickly captured after being corralled in a pasture. But the fourth — a mare who was initially dubbed “Z” — hopped a fence and disappeared. Shug’s adventure quickly captured public attention, spawning social media memes that placed the animal everywhere from riding a ferry across Puget Sound to rounding the bases at T-Mobile Park, home of the Seattle Mariners.

But there were more credible sightings elsewhere: Some area residents spotted Shug on their trail cameras, and that sparked some concerns since the cameras also recently captured cougars in the area.

Earlier Friday, King County officials closed off trail access points along the Snoqualmie Valley Trail in the Boxley Creek Natural Area, where the zebra seemed to be frequenting. People trying to see the zebra there may have been spooking it, making it harder to recapture, they said. Feeding zones were set up to help coax the animal out for a rescue.

Owner Kristine Keltgen previously told The Seattle Times she bought the zebras in Lewis County, Washington, and was bringing them to a petting zoo she runs near Anaconda, in southwestern Montana. She had been on the road for about two hours when she noticed one of the trailer’s floor mats was flapping and dragging behind her. When she opened the door to adjust the mat, the zebras ran out. Several people stopped to help corral the animals, including a rodeo clown and horse trainers, but Shug had managed to elude those attempts.

Shug will now be transported to Montana to join the rest of the dazzle, or group, of zebras, Regional Animal Services of King County said.