US judge rejects customer action against crypto exchange Coinbase-regulation
US judge rejects customer action against crypto exchange Coinbase-regulation
A US district judge has rejected a lawsuit against Coinbase submitted by customers of the crypto exchange and their CEO Brian Armstrong. The lawsuit claims that Coinbase sold 79 crypto tokens, which are not registered securities.
Customer lawsuit against Coinbase dismissed
A proposed collection Laws A lawsuit submitted by customers of the Coinbase (Nasdaq: Coin) cryptocurrency exchange was rejected on Wednesday by the US district judge Paul Engelmayer with prejudices, which means that they cannot be brought up again, reported Reuters.
The lawsuit was submitted in March last year against Coinbase Global Inc., Coinbase Inc. and CEO Brian Armstrong. The plaintiffs accused the crypto exchange of selling 79 crypto tokens that were not registered securities and not registering as a broker dealer. The lawsuit demands compensation from the sale or recruitment of the crypto tokens, of which the plaintiffs claimed that it was illegal contracts, since Coinbase is not registered with the US Securities and Exchange Commission (Sec).
The plaintiffs claimed that, unlike some crypto trading platforms that only bring together buyers and sellers, Coinbase claimed as a "intermediary" and thus became the "actual seller" of the crypto token. They claimed to raise this of the crypto exchange listed on the Nasdaq, transaction fees without adhering to the disclosure rules for traditional securities that are supposed to serve to protect investors.
without explaining whether the 79 crypto tokens were securities, judge Engelmayer decided that customers could not prove that the crypto exchange kept or sold ownership of the crypto tokens traded on the platforms and coinbase.
In addition, the judge decided that Coinbase was not directly involved in the transactions, although it allegedly promoted the crypto tokens by emphasizing their "alleged promise of values" and participating in "Airdrops" to increase the trading volume.
Coinbase previously said that the SEC had received preloads and found that the securities supervisory authority was looking for information such as the platform's listing processes.
The chairman of the US stock exchange supervisory authority SEC, Gary Gensler, has confirmed that Bitcoin has a emphasized that most of the others Krypto-token are . He repeatedly asked crypto trade and credit platforms to come in and to register with the Sec.
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