In the release, Grady said he launched an investigation into the exchange’s operations and its possible violations of state and federal securities laws by trading digital currencies, the vast majority of which are considered unregistered securities by the SEC and, therefore, in violation of federal law.
Grady said the exchange may have misled investors by failing to provide them with improper disclosure about the risks of trading and owning unregistered cryptocurrencies.
The SEC method of digital coins that the vast majority of digital coins are used for pure speculation or to conduct illegal activities such as drug sales and money laundering and that they are disconnected from the underlying blockchain technology, transacting business that is still in its early stages and is intended to provide consumers with a cheaper, safer, and more efficient payment system.
“We believe Coinbase, Robinhood, and other exchanges have violated the law, and investors who lost money purchasing cryptocurrencies on their platforms may be entitled to recover those losses,” Grady said.
Grady is also gathering information on customers of Coinbase, Robinhood, and other exchanges who have incurred losses while acquiring cryptocurrencies on their platforms via his Tampa, Florida-based legal business, according to the statement.
As Coincu reported, the SEC also blocked Binance.US’ deal to buy Voyager, alleging that the VGX token was an unregistered security.
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