A vp of cryptocurrency trade Coinbase, which Oregon’s Lawyer Common Dan Rayfield is suing, mentioned he’s been making an attempt to perceive why Oregon is the one state difficult the corporate after the federal Securities and Alternate Fee earlier this 12 months agreed to drop its own civil suit in opposition to it.
So Coinbase filed its personal public records lawsuit in opposition to Oregon’s governor, after it alleged the state “stonewalled” its requests for data to be taught what prompted the state’s authorized motion, together with contracts between the Oregon Division of Justice and two out-of-state law companies which are representing the state in its swimsuit in opposition to the cryptocurrency firm.
This week, Coinbase obtained a 2023 settlement between the state Justice Division and the Washington, D.C-based law firm Cohen Milstein Sellers & Toll, which is one in every of two companies representing Oregon in its swimsuit in opposition to Coinbase.
In it, the state agreed to rent the Cohen Milstein firm to examine Coinbase however wouldn’t pay the firm until authorized motion was taken in opposition to Coinbase and a court docket awarded damages to the state.
The firm donated to each Rayfield’s and his predecessor Ellen Rosenblum’s campaigns. It donated $10,000 to Rayfield in 2024, and $10,000 to Rosenblum in 2012, in accordance to state data.
“So you might have somebody that’s been empowered to examine a celebration, however they solely receives a commission if it leads to the conclusion that we ought to be sued and finally charged and fined,” mentioned Ryan VanGrack, vp of authorized. “That turns the investigation, the general public curiosity on its head, the place you’re not taking a look at points impartially, however you might have an incredible monetary incentive to get to ‘sure,’ as a result of that’s the one method you receives a commission.”
It’s common for state attorneys common to rent outside law companies to assist in authorized circumstances.
However VanGrack argues that what’s uncommon with the Oregon situation is that marketing campaign donors usually don’t get employed to symbolize a state, as about 22 states have pay-to-play regulations that prohibit political contributions from firms or executives searching for authorities contracts. Oregon doesn’t have that regulation.
That, coupled with the 2023 settlement that faucets the D.C. firm to each examine Coinbase and never pay the firm until it takes authorized motion in opposition to Coinbase and wins, is very uncommon, VanGrack contends.
Rayfield defended the state’s swimsuit in opposition to Coinbase, calling it the “first within the nation to shield customers,” in addition to the state’s use of outside attorneys to deal with the litigation for the state.
“Coinbase is now deploying a set of frequent and malicious techniques in an try to create a sideshow,” Rayfield mentioned in an e-mail. “Coinbase is making an attempt to use excessive paid attorneys to bully the state of Oregon and scare off different attorneys common from taking enforcement actions of their states. They gained’t succeed.”
The legal professional common mentioned different states have relied on the usage of outside attorneys to help their places of work in fits in opposition to opioid producers, huge tobacco, and biotech big Monsanto.
“It’s a confirmed tactic to maintain highly effective firms accountable, save taxpayers’ {dollars}, and scale back threat to the state,” Rayfield mentioned in a written assertion. “Coinbase’s twitter rants gained’t cease our laser give attention to defending Oregonians.”
He didn’t instantly reply to the monetary phrases of the state’s retention agreements with the law firm.
Rayfield filed swimsuit in opposition to Coinbase in April, saying the authorized problem was wanted due to the dismantling of federal regulatory businesses.
The lawsuit, initially filed in Multnomah County Circuit Courtroom, alleges Coinbase is violating the state’s securities legal guidelines by facilitating the sale of digital currencies that don’t come with correct disclosures.
“You don’t go in for a medical process with out understanding the dangers,” Rayfield mentioned in a press launch. “It’s the identical for on a regular basis people who need to put money into cryptocurrency. I’m dedicated to defending Oregon’s traders so that they’re not taken benefit of.”
Coinbase requested to switch the case to federal court docket, however attorneys for the state are arguing that the swimsuit be returned to state court docket.
In the meantime, Coinbase put in a number of public data requests to the governor’s workplace in Could, together with a request for the Justice Division’s retention agreements with the 2 out-of-state law companies representing the state in its authorized problem in opposition to Coinbase. It then sued the governor, alleging her workplace was not responsive to the data requests.
Coinbase initially solely acquired an April 2025 settlement that an assistant legal professional common in Rayfield’s workplace signed with the out-of-state firm.
This week, it obtained the 2023 settlement, VanGrack mentioned.
The 2023 settlement with the Cohen Milstein firm says it would “advise and help DOJ with investigation and litigation relating to issues involving potential litigation in opposition to Coinbase and associated defendants involving participation in gross sales of unregistered securities.”
The state Division of Justice “shall not in any other case pay the firm,” however the firm could request the court docket award it charges and bills, to be paid by defendants, “in litigation arising from its authorized companies,” the settlement says.
VanGrack took to social media this week to blast the Oregon authorized association.
“Is it any shock Oregon later filed?” VanGrack posted on X. “No surprise Oregon stands alone – the one state bringing these prices in opposition to CB. Nothing truthful, neutral or clear about that closed-door association. Govt officers ought to act within the public curiosity, not within the monetary curiosity of their out-of-state donors.”
Earlier this week, the U.S. Home of Representatives authorized a invoice, the Digital Asset Market Readability Act, which creates cryptocurrency market laws that Coinbase actively pushed for, together with the weakening of the Securities and Alternate Fee to police crypto. The invoice provides extra oversight authority to a special company, the Commodity Futures Buying and selling Fee. The invoice nonetheless wants approval from the U.S. Senate.
–Maxine Bernstein covers federal court docket and prison justice. Attain her at 503-221-8212, mbernstein@oregonian.com, observe her on X @maxoregonian, on Bluesky @maxbernstein.bsky.social or on LinkedIn.
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