Judge dismisses proposed class-action suit alleging Coinbase securities sales By Cointelegraph

A proposed class action suit against cryptocurrency exchange Coinbase (NASDAQ:), Coinbase Global and CEO Brian Armstrong alleging unregistered securities sales was dismissed in the United States District Court of Southern New York on Feb. 1. The suit, filed on March 11, claimed that 79 of the tokens listed on Coinbase were securities being sold without proper registration and customers were not warned of their risks.

The suit brought charges under the Securities Act of 1933 and Exchange Act of 1934 and used the Howey test, established by the U.S. Supreme Court in 1946, to identify the tokens. The plaintiffs argued for each token individually. In his decision, Judge Paul Engelmayer stated regarding the Howey claims: