U.S. District Court Judge Paul Engelmeier dismissed the class action against Coinbase.
The collective lawsuit against the cryptocurrency exchange contained accusations that Coinbase was involved in the sale of securities that were not registered in accordance with the established procedure, and accusations do not have registration in the status of a broker-dealer.
The lawsuit also stated that it was necessary to pay compensation to the plaintiffs as compensation for damages related to the sale of digital assets. The contracts concluded with Coinbase were called illegal in this document due to the fact that the cryptocurrency exchange is not registered with the US Securities and Exchange Commission.
The court ruling states that the plaintiffs’ claims are not consistent with the exchange’s user agreement. The judge stated that regardless of whether the assets had the actual status of securities, the claims that the cryptocurrency exchange owns the ownership of these assets are not fair.
The court dismissed the case, separately noting that there was no point in granting permission to make edits because the plaintiffs had previously repeatedly added statements to the text of the claim that contradicted their original complaint.
After it became known about the termination of the trial without any consequences for Coinbase, the value of the shares of the cryptocurrency exchange increased by 20%.
This Class Action was filed in federal court in New York in October 2021.
Coinbase General Counsel Paul Greuel tweeted that the management of the cryptocurrency exchange expresses gratitude to the federal court for a careful study of this case. He also noted that the court ruling confirms the provision of the user agreement that Coinbase has no ownership rights to customer assets.
After the conclusion of the trial, the cryptocurrency community called on the exchange to re-place trading pairs with XRP. Coinbase stopped trading XRP due to a lawsuit by the US Securities and Exchange Commission against Ripple. The exchange delisted the coin, fearing a lawsuit based on accusations of facilitating illegal securities trading.
As we have reported earlier, Dutch Central Bank Fines Coinbase.