Judge rules Coinbase must face New York lawsuit over unregistered securities sales

Odaily News A U.S. federal judge has ruled that Coinbase must face a lawsuit from customers who claim the platform illegally sold securities without proper registration. The ruling was made by U.S. District Judge Paul Engelmayer in Manhattan on Feb. 7.
The judge rejected Coinbase’s argument that it was not a “statutory seller” under federal securities laws. Engelmayer found that Coinbase was the only party to the transaction and was a seller under the relevant laws. Claims under state laws in California, Florida and New Jersey will also proceed.
The case was initially dismissed in February 2023 and partially reinstated by the Second Circuit Court of Appeals in Manhattan in April 2024. In addition, Coinbase is also facing legal action from the US SEC, accusing the exchange of allowing trading in unregistered securities. (TechinAsia)