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Class-action lawsuit dismissed: Coinbase wins in court

Coinbase wins in court against class-action brought by several customers.

By Luc Vesters
• 2 min read
Class-action lawsuit dismissed: Coinbase wins in court

Coinbase wins in court against the class-action brought by a group of customers. They sought to block the crypto exchange from trading tokens.

US District Judge Paul Engelmayer dismissed a class action lawsuit against crypto exchange Coinbase, Reuters reports. According to the plaintiffs, Coinbase sold unregistered assets and traded without an exchange license. In addition, the crypto exchange allegedly evaded disclosure rules and charged "unlawful transaction costs".

Engelmayer disagreed: "Coinbase did not play a direct role in the transactions," the judge said. He added: "These exchange activities resemble marketing efforts, materials and services that courts [...] have found insufficient to qualify defendants [Coinbase] as sellers."

Dismissing the lawsuit is a win for Coinbase. It remains to be seen whether the customers will appeal the ruling. The plaintiffs wanted to stop the company from trading tokens, while seeking damages for losses and transaction costs. Earlier, the Dutch central bank had already demanded millions from Coinbase after the exchange failed to register properly.

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