Case Against Coinbase That Claimed It Sold Unregistered Securities Is Dismissed

A lawsuit accusing Coinbase Global Inc (COIN.O) of selling unregistered securities and failing to register as a broker dealer was dismissed by a US judge on Wednesday.

Customers who traded digital assets known as tokens on the Coinbase and Coinbase Pro trading platforms submitted claims in the proposed class action, but U.S. District Judge Paul Engelmayer in Manhattan rejected them.

Engelmayer claimed that despite Coinbase allegedly having advertised the sale of the tokens by describing their “purported value proposition” and taking part in “airdrops” of free tokens to boost trading volume, customers could not demonstrate that Coinbase had actually sold or held title to the tokens.

According to Engelmayer, “These exchange-related actions are consistent with the marketing initiatives, products, and services that courts… have ruled insufficient” to deem defendants to be sellers.

With the intent to preclude further litigation, Engelmayer dismissed claims based on state law without prejudice and claims based on federal securities statutes with prejudice.

Requests for comment from the customers’ attorneys, Coinbase’s attorneys, and the company’s attorneys were not immediately returned.

Case Against Coinbase That Claimed It Sold Unregistered Securities Is Dismissed

A lawsuit accusing Coinbase Global Inc (COIN.O) of selling unregistered securities and failing to register as a broker dealer was dismissed by a US judge on Wednesday.

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