• U.S. District Court Judge Paul Engelmayer has dismissed a proposed class action lawsuit brought against Coinbase by customers who alleged that Coinbase sold them unregistered securities and failed to register as a broker-dealer.
• The judge determined that the plaintiff’s claims contradicted their initial complaint and thus could not be sustained.
• This dismissal is a victory for Coinbase, however, the company is still facing other class action cases in various states.
A U.S. District Court Judge has dismissed a proposed class action lawsuit against Coinbase, the publicly-traded U.S.-based crypto exchange. The lawsuit was brought forward by customers who accused Coinbase of selling them unregistered securities and also failing to register as a broker-dealer.
The case, Underwood vs. Coinbase Global, was filed in the Southern District of New York. Coinbase CEO Brian Armstrong was also named as a defendant. Judge Paul Engelmayer presided over the case and ultimately decided to dismiss the claims after finding that the plaintiff’s claims in their amended complaint contradicted their initial complaint.
Though the dismissal of this case is a victory for Coinbase, the exchange is still facing other class action cases in various states, including Georgia, California, and Massachusetts. These lawsuits allege that Coinbase committed fraud, negligence, and other misdeeds in connection with its operations.
Coinbase has denied any wrongdoing, and has argued that the lawsuits are without merit. The company also maintains that it is compliant with all applicable laws and regulations. Coinbase has been actively defending itself against the various lawsuits and is fighting for a dismissal of each case.
In the meantime, Coinbase has continued to expand its operations, launching new products and services, and growing its customer base. The company recently went public on the Nasdaq stock exchange and has seen its valuation soar to over $100 billion.
Coinbase has also joined forces with other leading crypto exchanges, such as Kraken and Binance, to form the Crypto Rating Council. This council aims to provide clarity on the regulatory status of digital tokens and to create a standardized method of evaluating digital assets.
With the dismissal of the Underwood class action lawsuit, Coinbase has taken a positive step in its fight against the other class action lawsuits. However, the company still faces the challenge of defending itself in the other cases, and the ultimate outcome of these lawsuits remains to be seen.