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Federal Judge Dismisses Unregistered Securities Class Action Suit Against Coinbase (Shares Jump 21%)

Time Stamp: February 2, 2023 3:11 PM
Source Node: 2384364

Republished By Plato

MarketWatch | Dean Seal | Feb 2, 2023

Pixabay sergeitokmakov crypto and regulation - Federal Judge Dismisses Unregistered Securities Class Action Suit Against Coinbase (Shares Jump 21%)

Image: Pixabay/sergeitokmakov

Shares of Coinbase Global Inc. rose 21% to $79.50 after a federal district judge dismissed a proposed class action accusing the crypto exchange of selling tokens that qualified as unregistered securities.

The suit, filed in October 2021, alleged that nearly 80 of the digital assets traded on the Coinbase exchange fit the description of a security under federal law, and that Coinbase therefore violated the law by selling the tokens without proper registration.
A New York federal judge ruled Thursday that the token buyers behind the suit have made contradictory allegations between their original complaint and a later amended complaint as to whether Coinbase actually held title to or sold the tokens, rather than just facilitate their trading on its exchange, in “an apparent attempt to evade dismissal.”

See: Coinbase is Cutting 950 Employees (20%) | Brother of Former Employee 10 months Sentence for Insider Trading

The judge further found that the terms of Coinbase’s user agreement, which state that only exchange users hold title over tokens they trade, “flatly contradict” the lawsuit’s allegations. Finding that further amendments would be futile, the judge dismissed the case with prejudice.
The dismissal marks a somewhat rare legal victory for a major player in the crypto space, which is under intense scrutiny by the U.S. Securities and Exchange Commission following last year’s selloff in the cryptocurrency market.

Continue to the full article –> here

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Federal Judge Dismisses Unregistered Securities Class Action Suit Against Coinbase (Shares Jump 21%)

Republished By Plato

Shares of Coinbase Global Inc. rose 21% to $79.50 after a federal district judge dismissed a proposed class action accusing the crypto exchange of selling tokens that qualified as unregistered securities.

See: Coinbase is Cutting 950 Employees (20%) | Brother of Former Employee 10 months Sentence for Insider Trading

Continue to the full article –> here

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