Coinbase Wins Partial Dismissal in Token Sales Lawsuit

A New York federal court has partially dismissed a class action lawsuit against Coinbase, ruling that the exchange does not qualify as a statutory seller for matched transactions under the Securities Act of 1933 and state blue sky laws.

The decision, made by U.S. District Judge Paul Engelmayer in Manhattan, removes claims tied to nearly all matched transactions, covering an estimated 99.97% of Coinbase's trading volume, or hundreds of billions of dollars.

However, the judge has allowed claims related to inventory transactions, where Coinbase sells tokens from its own holdings, totaling at least $178 million, to proceed in the lawsuit.