Coinbase Wins Most of Customer Lawsuit Over Unregistered Token Sales
A federal judge has largely dismissed a lawsuit against Coinbase, the largest US cryptocurrency exchange, over allegations it sold unregistered securities to customers. The suit claimed that transactions involving XRP and dogecoin were unlawful.
US District Judge Paul Engelmayer in Manhattan ruled that matched transactions between buyers and sellers on the platform accounted for an estimated 99.97% of trading volume, which he said did not constitute a statutory sale under federal securities law.
The judge also dismissed claims related to inventory transactions, where Coinbase filled orders from tokens it owned, but allowed customers to pursue those claims due to the relatively small percentage of total trading volume they represented (0.03%).