Share this article
Judge Dismisses Proposed Class-Action Lawsuit Alleging Coinbase Sold Unregistered Securities
The customers also accused Coinbase of failing to register as a broker-dealer.
Updated Feb 1, 2023, 8:01 p.m. Published Feb 1, 2023, 7:04 p.m.
U.S. District Court Judge Paul Engelmayer has rejected claims in a proposed class action by customers who claim Coinbase sold them unregistered securities and also failed to register as a broker-dealer, according to a filing on Wednesday.
The case is Underwood vs. Coinbase Global in the Southern District of New York. Coinbase CEO Brian Armstrong was also named as a defendant.
STORY CONTINUES BELOW
The New York-based judge decided to toss out the lawsuit after finding that the plaintiff's claims made in their amended complaint filed last March "added numerous allegations that directly contradicted their initial Complaint."
Though the dismissal of the Underwood class action suit is a victory for Coinbase, the publicly-traded U.S.-based crypto exchange is still playing whack-a-mole with other class action cases in various states, including Georgia and New Jersey.
UPDATE (Feb. 1, 20:01 UTC): Added additional background.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
CFTC's acting chief Pham poised to go to crypto firm MoonPay once Mike Selig lands
The leader of the derivatives regulator is planning to join the crypto industry as the CFTC and other federal regulators work on policies to benefit the sector.
What to know:
- Commodity Futures Trading Commission Acting Chairman Caroline Pham confirmed again that she's heading to crypto firm MoonPay when the Senate confirms her replacement and he's sworn in.
- President Donald Trump's CFTC chair nominee Mike Selig was set for a Senate vote Wednesday evening, according to that chamber's schedule.
- Selig, currently an SEC official, would arrive at the CFTC just as several of Pham's crypto initiatives have gone live.
Top Stories
