Oregon Attorney General Dan Rayfield has filed a lawsuit against Coinbase, one of the largest cryptocurrency trading platforms in the U.S., for allegedly violating the Oregon Securities Law by promoting and facilitating the sale of unregistered securities to Oregon consumers.
Filed in Multnomah County Circuit Court, the lawsuit accuses Coinbase of profiting from millions in fees while Oregonians suffered substantial financial losses through investments in high-risk digital assets that lacked regulatory oversight. Rayfield asserts that in the absence of federal enforcement under the Trump administration, state officials must step in to hold crypto companies accountable.
“After building trust with Oregon consumers, Coinbase sold high-risk investments without them being properly vetted to protect consumers,” said Rayfield. “Oregonians lost money, and we believe Coinbase should be held accountable and take steps to protect consumers.”
According to the complaint, Coinbase not only listed unregistered cryptocurrencies, but also facilitated and actively promoted their sale—managing trades, storing assets, and encouraging investment in volatile and often deceptive markets. These tokens, Rayfield’s office claims, are vulnerable to “pump-and-dump” schemes and fraud, with investors unable to fully understand the risks or verify the legitimacy of the assets.
A notable example cited in the lawsuit involves the cryptocurrency “Internet Computer Protocol” (ICP), which debuted on Coinbase at \$700 per coin but fell to \$72 in just one month. Today, it trades at around \$7—representing a 99% collapse that reportedly erased billions in investor value.
The lawsuit follows the Securities and Exchange Commission’s (SEC) decision to drop its own case against Coinbase and reassign the lead attorney, raising concerns among state officials about federal agencies retreating from cryptocurrency oversight under President Trump’s administration.
“With federal regulators backing away, the responsibility falls on the states to step up,” Rayfield said. “I am committed to protecting Oregon’s investors so they’re not taken advantage of.”
Rayfield’s action positions Oregon among a growing list of states pursuing legal action against major cryptocurrency platforms amid heightened scrutiny over digital asset regulation.
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