Shares in Coinbase surged over 20% on Thursday following a ruling by US District Court Judge Paul Engelmayer, who dismissed a class-action lawsuit against the cryptocurrency exchange.
The lawsuit accused Coinbase of selling unregistered securities and failing to register as a broker-dealer. The plaintiffs sought damages, arguing that the sale of digital assets constituted illegal contracts due to Coinbase’s lack of registration with the SEC.
However, the judge stated that the claims regarding the status of the assets as securities were irrelevant, as Coinbase’s user agreement “flatly contradicts” the assertions made by the plaintiffs about the firm holding title to the assets traded on its platform.
The case was dismissed with prejudice, with the judge noting that allowing the plaintiffs to amend their complaint would be futile, as they had already introduced multiple allegations that contradicted their initial claims.
Read the order:
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