Coinbase Wins Partial Dismissal of Customer Lawsuit Over Token Sales

A lawsuit against Coinbase has been partially dismissed by US District Judge Paul Engelmayer in Manhattan. The customers who sued claimed that over 60 tokens, including XRP and dogecoin, were unregistered securities sold by the exchange without proper registration.

The judge dismissed all claims related to 'matched' transactions, which accounted for an estimated 99.97% of trading volume, valued at hundreds of billions of dollars. This type of transaction is where Coinbase pairs customers' buy and sell orders.

However, the judge allowed customers to pursue claims over 'inventory' transactions, which made up only 0.03% of trading volume, totaling around $178 million in sales. In these transactions, Coinbase fills orders from tokens it owns.

Coinbase Chief Legal Officer Paul Grewal posted on X that the company will continue to defend the remaining claims.