Coinbase Consumer Lawsuit on Securities Claim Revived by Appeals Court

A US appeals court revived a 2021 consumer lawsuit against Coinbase Inc. accusing the cryptocurrency exchange of facilitating the sale of unregistered securities.

The 2nd US Circuit Court of Appeals said Friday the federal judge in New York who dismissed the suit last year shouldn’t have relied on a December 2021 user agreement because Coinbase had updated the language from earlier versions. The three-judge appeals panel sent the case back to the district court to determine which user agreement should be used in determining whether to dismiss the class-action suit.

US District Judge Paul A. Engelmayer in February last year said the 2021 user agreement contradicted allegations in the complaint, which claimed the company holds title to the digital assets that are bought and sold on the exchange.

Read the source article at Yahoo Finance