Coinbase Must Face Investors’ Unregistered Seller Claims (1)

Coinbase Inc. was denied judgment on pleadings in an investor suit that alleges the major cryptocurrency platform is an unregistered broker-dealer peddling securities, a federal judge ruled Friday, while narrowing the scope of discovery.

The US District Court for the Southern District of New York previously dismissed this investors’ complaint, but the US Court of Appeals for the Second Circuit revived some claims in April. The Second Circuit said that plaintiffs had plausibly alleged Coinbase was a “statutory seller” under federal law and told the district judge to review state law claims.

Investors Christopher Underwood, Louis Oberlander, and Henry Rodriguez ...