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Judge Dismisses Proposed Class-Action Lawsuit Alleging Coinbase Sold Unregistered Securities
The customers also accused Coinbase of failing to register as a broker-dealer.
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.
STORY CONTINUES BELOW
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.
Nelson Wang
Nelson edits features and opinion stories and was previously CoinDesk’s U.S. News Editor for the East Coast. He has also been an editor at Unchained and DL News, and prior to working at CoinDesk, he was the technology stocks editor and consumer stocks editor at TheStreet. He has also held editing positions at Yahoo.com and Condé Nast Portfolio’s website, and was the content director for aMedia, an Asian American media company. Nelson grew up on Long Island, New York and went to Harvard College, earning a degree in Social Studies. He holds BTC, ETH and SOL above CoinDesk’s disclosure threshold of $1,000.
Cheyenne Ligon
On the news team at CoinDesk, Cheyenne focuses on crypto regulation and crime. Cheyenne is originally from Houston, Texas. She studied political science at Tulane University in Louisiana. In December 2021, she graduated from CUNY's Craig Newmark Graduate School of Journalism, where she focused on business and economics reporting. She has no significant crypto holdings.
