It looks like Coinbase might be facing some serious trouble after they announced their US regulated Bitcoin exchange, which eventually turned out to be not so regulated at all in several states. Tripp Levy PLLC, a leading national securities and shareholder rights law firm, has set their sights on Coinbase, Inc. for their (alleged) false and misleading information to potential and current Coinbase Bitcoin Exchange users.
Not Regulated Per Se
As we mentioned in yesterday’s article regarding the Bitcoin value, Coinbase jumped the gun by stating their Bitcoin Exchange meets all regulatory requirements in 25 states. According to their original posts, both the state of New York and California allow them to operate within these respective jurisdictions, which turned out to be false information, causing a lot of unrest in the Bitcoin community.
Judging from the information we have received, Coinbase may face a far worse fate than just negative feedback from the Bitcoin community. According to several sources, the Coinbase announcement on January 25th may have artificially inflated the Bitcoin price, as the value passed the US$300 threshold less than 24 hours after the announcement.
However, the Bitcoin price started dropping again the US$225 mark shortly after when word got out that The New York’s Department of Financial Services , as well as California’s Department of Business Oversight had not issued an operations license to Coinbase. By operating without such a license, Coinbase’s operations would be considered illegal in both states.
Tripp Levy PLLC
Tripp Levy PLLC represents individual and institutional shareholders and, along with its affiliate, has recovered billions of dollars for shareholders in similar actions around the globe. Tripp Levy PLLC is affiliated with the law firm Milberg LLP. The National Law Journal has named Milberg one of the “50 Elite Trial Lawyer Firms” and one of the “50 Leading Plaintiff Firms in America.” Attorney advertising. Prior results do not indicate a similar outcome.
Major companies are always “under investigation” by third parties when a massive price fluctuation occurs. Apparently it is rather easy to “investigate” a major company at little expense. Take this report with a grain of salt as to how this will affect Coinbase’s mode of operation.
Website : http://www.tripplevy.com/