An American judge has ruled that the Crypto Exchange Coinbase would have to face a class action case filed by customers in New York, reported by Reuters.
The trial alleges that the coinbase illegally sold securities and acts as a direct vendor.
In a judgment given on 7 February, US District Judge Paul Angelmeyer rejected the coinbase’s argument that it is not a legal seller under the US Federal Securities Act. The exchange also argued that it never transferred the title of 79 tokens listed in the trial, which the customers traded.
However, the judge pointed to the argument that “customers on the coinbase fully transact with the coinbase.” According to the ruling, the allegation comes to the conclusion that the US -based Crypto Exchange was a seller.
One in statement For Reuters, the coinbase reiterated that it “does not listed, offer or sell securities.” The exchange plan is to fight to dismiss other claims in the case.
Following the court’s decision in April 2024, the latest development comes after more than nine months, which was rejected by the first Judge Angelmeyer. While the judge prosecuted in February 2023, an order of the second US Circuit Court of Appeal in Manhattan in April 2024 allowed some allegations to stand up.
Nearly two years after the original verdict, on 7 February, 2025, Judge Angelmeyer’s decision allows parts of the case that the appellate court decided.
In May 2024, a group of coinbase customers from California and Florida filed a new case against the coinbase and its CEO Brian Armstrong, alleging that the Crypto sales of the exchange violated the securities laws.
The lawsuit identified several tokens, including Solana, Polygos, Pass Protocol, Decentralland and Algorand, securities. The coinbase, however, suggests that it does not list or sell securities and that the secondary crypto does not meet the norms to classify sales norms like this.
In addition to class action cases, the coinbase continues to fight a separate case filed by the American Securities and Exchange Commission. The SEC sued the coinbase in June 2023, alleging that the company was operated as an unregistered security exchange.
