Oregon Attorney General Dan Rayfield Files Lawsuit Against Coinbase

Oregon Attorney General Dan Rayfield has initiated legal action against Coinbase, one of the leading cryptocurrency trading platforms in the United States.

Oregon Attorney General Dan Rayfield has filed a lawsuit against Coinbase in Multnomah County Circuit Court for allegedly violating Oregon Securities Law.

The lawsuit claims that Coinbase facilitated the sale of unregistered cryptocurrencies to Oregon residents, resulting in substantial financial losses for investors.

"We trust that companies will follow the law and act in the best interest of consumers," said Rayfield. "But when companies like Coinbase prioritize their own gains and disregard regulatory frameworks, it undermines the market and harms investors."

According to the complaint, Coinbase, a leading cryptocurrency trading platform in the United States, operated an exchange that supported the sale of unregistered securities.

These actions allegedly took place despite the SEC's warnings and guidance to Coinbase regarding the legal status of cryptocurrencies.

The lawsuit further alleges that Coinbase approved cryptocurrencies for listing, connected buyers and sellers, managed trades, and promoted various digital assets to Oregonians without proper regulatory oversight.

"You don't go in for a medical procedure without knowing the risks. It's the same for everyday folks who want to invest in cryptocurrency," said Rayfield.

The complaint maintains that these unregistered securities were "vulnerable to schemes" such as pump-and-dump operations and fraud, which could result in significant losses for investors.

The lawsuit also mentions that the SEC previously identified the Internet Computer Protocol (ICP) as an unregistered security in an earlier case.

After its launch on Coinbase, ICP's price reportedly fell drastically from $700 to $72 within a month, and it now trades around $7—a nearly 99% decline.

The state AG's lawsuit follows the SEC's decision to drop its case against Coinbase and reassign the attorney handling that case.

"We're having to pick up the pieces at the state level because there hasn't been enough federal action to protect consumers," said Rayfield.

In response to the lawsuit, Coinbase's Chief Legal Officer, Paul Grewal, expressed strong disagreement on X.

"This lawsuit is a copycat case of the SEC's earlier enforcement action against Coinbase, which was dismissed," Grewal stated.

He described the legal action as a "politically motivated effort that will drain taxpayer dollars and distract from the pressing need for bipartisan legislation to provide clear rules of the road for digital assets."

Grewal also claimed that the Oregon AG's complaint disregarded key judicial rulings and appeared to be influenced by private law firms seeking to profit from the lawsuit.

"We remain confident in our legal standing and will vigorously contest this misguided lawsuit," he asserted.

The exchange executive concluded by saying that business operations in Oregon would continue as usual.