Coinbase Faces Legal Heat Over Songbird Crypto Controversy

• Coinbase was scrutinized for allegedly converting Songbird tokens, igniting legal battles and debates on crypto asset rights.
• Ripple’s CLO exposes contradictions in SEC’s crypto regulation, spotlighting the need for clear guidelines.
• Legal experts suggest Coinbase’s actions could breach principles of unjust enrichment, opening new avenues for litigation.

Coinbase has come under scrutiny over allegations related to handling certain customer assets. Fred Rispoli, an attorney at HODL Law firm, criticized the exchange for allegedly converting customer assets, specifically Songbird’s SGB tokens, to its control. This claim has stirred discussions within the legal and crypto communities about token holders’ rights and the exchanges’ responsibilities.

Rispoli’s remarks on X accused Coinbase of taking unauthorized control of customers’ SGB tokens, a move he likened to the conversion of customer property. He further revealed that HODL Law is actively pursuing litigation against Coinbase, highlighting a broader legal battle that could have significant implications for the crypto industry. Rispoli’s interest in related legal matters, such as the ongoing Ripple vs SEC c…

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