Coinbase Wins Dismissal of Most Claims in Customer Lawsuit Over U.S. Token Sales
A federal judge dismissed the majority of a lawsuit against Coinbase, where customers accused the cryptocurrency exchange of illegally selling unregistered securities through its token offerings. The case centered on over 60 tokens including XRP and Dogecoin. Judge Paul Engelmayer ruled that Coinbase was not a statutory seller for most transactions—accounting for nearly all trading volume—because it did not transfer ownership or solicit trades in those cases. However, the judge allowed claims related to inventory transactions where Coinbase directly sold its own tokens from stock, which accounted for at least $178 million. The decision is significant as it clarifies parts of securities law applicable to crypto exchanges and could influence future legal actions against similar platforms. This ruling comes amid a broader regulatory rollback in the U.S., affecting how cryptocurrency companies operate under current policies.
Tickers: $COIN
Topics: cryptocurrency lawsuit securities law