Coinbase faces a lawsuit for still selling XRP cryptocurrencies.
The suit was filed by Coinbase user Thomas Sandoval who claimed that Coinbase was making a profit from the sale of XRP when the firm was aware that XRP was a security.
According to Sandoval, Coinbase needs to keep abreast of current issues involving Ripple Labs being sued by the Securities and Exchange Commission (SEC) last week.
Coinbase has been accused of violating the Unfair Competition Law of California (UCL) by earning commissions on XRP sales.
Under the act, any illegal business activities and false advertising will be prosecuted.
Apparently, Coinbase was unlucky because just two days ago, the cryptocurrency exchange platform announced XRP trading restrictions starting January 19, 2021 following the issue of the suit.
To date, a total of 14 crypto exchange platforms have announced restrictions on XRP.
However, Coinbase has not yet commented on the issue.
