Customers of Coinbase may proceed with a lawsuit against the company for allegedly selling securities without registering as a broker-dealer.
In a ruling on Friday, US District Judge Paul Engelmayer rejected Coinbase’s argument that it did not qualify as a “statutory seller.” The judge noted that customers on Coinbase transact directly with the company, making it a seller.
He also denied Coinbase’s attempt to dismiss claims under state laws, agreeing with customers’ allegations that Coinbase directly sold the tokens in question in California, Florida, and New Jersey.
Coinbase maintained its stance that it does not offer or sell securities on its platform, but stated that it looks forward to addressing the remaining claims in court.
