There was some talk of a possible lawsuit in the United States against Coinbase, Coinbase Global and CEO Brian Armstrong for selling unregistered securities. The class action plaintiffs’ claim that there are 79 securities on Coinbase that are being sold without registration has now been rejected by the court.
Why was the Coinbase case dismissed?
The interesting thing about the judge’s ruling, Paul Engelmayer, is that he does not deny that the tokens qualify as securities under US law. The reason he dismissed the case is that, contrary to plaintiffs’ claim, Coinbase is not the “actual seller” of the tokens.
🚨BREAKING🚨
Class action lawsuit against @coinbase dismissed by US Judge$COIN up 5% on the news👀 pic.twitter.com/3IXf8m6Kiss
— Bankless (@BanklessHQ) February 1, 2023
Furthermore, the judge says that Coinbase does not promote the sales of the tokens within the strict legal definition. For those reasons, the plaintiffs’ claims have been dismissed. Coinbase shares shot up more than 5 percent today in response to news that the lawsuit has been settled.
Incidentally, the share will also rise due to the good performance of bitcoin and the rest of the crypto market. After all, success for bitcoin also means success for Coinbase. You often see that Coinbase shares trade almost with a kind of leverage on the bitcoin price, because they react more strongly to both increases and decreases in the price.
Fine for Coinbase in the Netherlands
In the Netherlands, Coinbase is not doing as well, because De Nederlandsche Bank recently handed out a fine of more than 3 million euros to the exchange platform. The reason for the fine was failure to comply with the registration requirement that has been in effect for some time in the Netherlands.
Incidentally, Coinbase was not the only major exchange to be fined by De Nederlandsche Bank, as Binance was also fined for the same offense. Coinbase has now been registered and complies with the rules that apply in the Netherlands to operate as a crypto exchange.
