Coinbase Global and its CEO have managed to obtain a victory in court after the class-action lawsuit which was previously filed against the company was dismissed.
In October 2021, the global crypto exchange received notice about the class-action lawsuit filed against it and its CEO in a New York-based federal court. At the time, the allegations revolved around 79 tokens showcased by the crypto exchange and their being sold as securities with no registration for broker-dealer activity. Furthermore, the claims were that Coinbase users did not receive information about potential consequences.
Judge Engelmayer decided that the user agreement terms established by Coinbase were not at fault in front of the lawsuit’s allegations. Also, the crypto exchange did not explicitly ask for investments.
The US District Judge was not able to determine if the virtual token offerings mentioned by the claims were indeed securities. Engelmayer decided that the marketing campaigns commissioned by Coinbase, such as crypto price news updates and descriptions, were not enough to be considered an active solicitation.
The lawsuit concluded with a dismissal of any legal claims as being prejudiced and they can not be brought in front of a US judge again. As a result, Coinbase’s stock price registered important growth. COIN’s value increased by 12.35% on the day following the judge’s official rulling. After-market trading rose an extra 3.41%.
