Judge Dismisses Proposed Class-Action Lawsuit Alleging Coinbase Sold Unregistered Securities

The customers also accused Coinbase of failing to register as a broker-dealer.

AccessTimeIconFeb 1, 2023 at 7:04 p.m. UTC
Updated Feb 1, 2023 at 8:01 p.m. UTC

U.S. District Court Judge Paul Engelmayer has rejected claims in a proposed class action by customers who claim Coinbase sold them unregistered securities and also failed to register as a broker-dealer, according to a filing on Wednesday.

The case is Underwood vs. Coinbase Global in the Southern District of New York. Coinbase CEO Brian Armstrong was also named as a defendant.

The New York-based judge decided to toss out the lawsuit after finding that the plaintiff's claims made in their amended complaint filed last March "added numerous allegations that directly contradicted their initial Complaint."

Though the dismissal of the Underwood class action suit is a victory for Coinbase, the publicly-traded U.S.-based crypto exchange is still playing whack-a-mole with other class action cases in various states, including Georgia and New Jersey.

UPDATE (Feb. 1, 20:01 UTC): Added additional background.


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