Coinbase Gets Terra Token Holders’ Securities Claims Thrown Out

A group of Coinbase Global Inc. users who held Terraform Labs tokens can’t maintain their lawsuit against the cryptocurrency exchange, a federal court ruled Wednesday.

The securities claims are dismissed and the rest of the claims in the suit must go to arbitration, Judge Jed S. Rakoff said in a two-page order for the US District Court for the Southern District of New York. He said he’d provide his reasoning “in due course.”

More than a dozen exchange users who held Terra’s LUNA and “Wrapped LUNA” tokens sued Coinbase in May 2025, saying it had a conflict of interest because ...