Legal proceedings against Coinbase continue as the court has ruled to consider the class action lawsuit claiming illegal securities sales.
Basis of the Lawsuit
The plaintiffs allege that Coinbase illegally sold securities and acted as a direct seller, involving 79 tokens which were allegedly traded on the platform.
Judge's Rationale
Judge Paul Engelmayer dismissed Coinbase’s argument that it is not a statutory seller under U.S. federal securities law, asserting that 'customers on Coinbase transact solely with Coinbase itself.'
Additional Lawsuits Against Coinbase
Aside from this class action lawsuit, Coinbase continues to defend against a lawsuit filed by the U.S. Securities and Exchange Commission (SEC), alleging unregistered securities exchange operation.
Coinbase's legal challenges persist, with the company stating its intentions to contest the claims in court. This case highlights ongoing legal ambiguities surrounding cryptocurrency exchanges and trading.
