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The US judge ruled that Coinbase Crypto Exchange must face a lawsuit with a class action handled by customers in New York, Reuters reported.
The lawsuit states that Coinbase was illegally selling securities and that he acted as a direct seller.
In a verdict rendered on February 7, US District Judge Paul Engelmayer rejected Coinbase’s argument that he was not a legal seller under the US Federal Secretary Paper Law. The exchange also claimed that he had never conveyed the title 79 tokens listed in the lawsuit, traded by customers.
However, the judge pointed to the argument that “customers at Coinbase Transact exclusively with Coinbase itself”. According to the verdict, this accusation leads to the conclusion that the crypto exchange is based in the USA seller.
In a statement For Reuters, Coinbase reiterated that “he does not state, offer or not sell securities.” The exchange is planned to fight to reject other requests in this case.
The last development comes more than nine months after the court’s decision in April 2024. The aspects of the case previously rejected by Judge Engelmayer. While the judge abolished the lawsuit in February 2023, the order with the 2 Appeal Court in Manhattan in April 2024 enabled the apartment of a certain accusation.
The judgment of Judge Engelmayer on February 7, 2025, almost two years after the original verdict, allows parts of the case for which the appealing court decided to continue.
In May 2024, a group of customers of Coinbase from California and Florida filed a new lawsuit against Coinbase and his executive director Brian Armstrong, claiming that the crypto sales had violated the laws on securities.
The lawsuit identified several tokens, including Solana, a polygon, near the protocol, decentral and algoranda, as a securities. Coinbase, however, claims that he does not cite or not sell securities and that secondary sales of cryptocurrencies does not meet the criteria to be classified as such.
In addition to class lawsuits, Coinbase continues to fight a separate lawsuit filed by the US Securities Commission. Secus sued Coinbase in June 2023, claiming that the company acted as an unregistered exchange of securities.
