Crypto exchange Coinbase has been hit with two separate class-action lawsuits on Thursday. Each allege the company made “false and misleading statements” regarding the nature of its operations.

Each suit claims that investors suffered losses due to the bankruptcy clause in its SEC filing and recent reports of an SEC probe into Coinbase over offering trading services for crypto assets that should've been registered as securities.

The first suit was filed by Bragar Eagel & Squire in the U.S. District Court of New Jersey, with the law firm acting on behalf of “all persons and entities” who purchased “Coinbase securities” between April 14, 2021, and July 26, 2022.

The second lawsuit came from the San Diego-based Robbins Geller Rudman & Dowd LLP—which describes itself as “one of the world’s leading complex class action firms”— and covers the same class period.

Both suits use largely the same wording, asserting that Coinbase “knew or recklessly disregarded” that the crypto assets it held should not only be registered as securities but could also potentially be subject to bankruptcy proceedings in which the exchange’s customers would be treated as general unsecured creditors.

Decrypt has contacted Coinbase for comment.

Coinbase investors invited to join as plaintiffs

Coinbase disclosed that the crypto assets it held “may be considered to be the property of a bankruptcy estate” in its 10-Q filing submitted on May 10 along with the Q1 earnings report.

The two class action...

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