With news that Ripple Labs’ are facing a complaint from U.S. Securities and Exchange Commission (SEC) after they raised concerns about the potential selling of XRP coin, news has broken that crypto exchange Coinbase are also feeling the spotlight after a user of their platform filed a complaint against the exchange.

The complaint was filed in Northern District Court of California by Thomas C. Sandoval and focuses on the plaintiff alleging that Coinbase knowingly allowed the sale of XRP, even though it has been said to be an unregistered security, making revenue in the process.

A look at the lawsuit which is seeking class action status shows that the complaint alleges that Coinbase broke California’s unfair competition laws by gaining “an unwarranted competitive advantage over digital asset exchanges that only sold commodities.”

According to reports, Coinbase have been told that the complaint comes with a number of issues that would have to be looked at, including the allegations that the exchange gained a competitive advantage over their competition, with those claims being made on an “information and belief” basis, showing that the claim is based on the plaintiff suspecting that is the case.

The filing of the complaint comes after Coinbase had already publicly revealed that they were to suspect trading of XRP on their exchange, leaving possible investors with the ability to continue to hold their XRP within their account but without the ability to be able to trade the coin.

Mr Sandoval’s suit seeks unspecified compensation damages, legal costs and other reliefs.

Coinbase have a history of being able to defend themselves legally when required and Anderson Kill partner Stephen Palley said that after reviewing the complaint, he can see the case being a “hard fought” battle for the plaintiff to be able to prove.