Legal disputes and discussions on crypto asset rights occurred when Coinbase was investigated for allegedly converting Songbird tokens.
Allegations about the management of specific client funds have brought Coinbase under investigation. An attorney from the HODL Law company named Fred Rispoli blasted the exchange for purportedly taking ownership of client assets, in this case Songbird’s SGB tokens. Claims about the rights of token holders and the duties of exchanges have sparked debates in the crypto and legal communities.
According to Rispoli’s comments on X, Coinbase converted consumer property by illegally acquiring possession of users’ SGB tokens. He went on to say that HODL Law is suing Coinbase, which is just one example of a larger legal fight that may affect the cryptocurrency market greatly. Rispoli’s involvement in relevant legal cases highlights his firm’s involvement in cryptocurrency-related legal challenges. One such case is the current Ripple vs. SEC.
Lawyer Bill Morgan also shared Rispoli’s X-related worries, highlighting how dubious Coinbase’s handling of the SGB tokens was. Morgan made the point that keeping or selling tokens not intended for the exchange is inappropriate since Coinbase did not agree to take part in the 2020 SGB airdrop snapshot, which aimed at participating XRP wallets.
Morgan said that such a lawsuit in Australia may be based on the concept of unjust enrichment, which aims to ensure that no one gains financially at the cost of another without a legitimate reason.
Also related, Stuart Alderoty, chief legal officer of Ripple, brought attention to differences in the regulatory positions taken by Treasury Secretary Janet Yellen and the SEC. Alderoty brought attention to the inconsistency between Yellen’s need for legislative action to address regulatory gaps and the SEC’s treatment of cryptocurrency as a minor issue in the Coinbase litigation. The crypto business is seeking clarity and uniformity in legal norms in response to this uncertainty in regulatory attitudes.
Also Read: Australian DeFi faces “nuanced ramifications” as a result of the Block Earner case February 9, 2024
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