U.S. judge rules Coinbase must face lawsuit over alleged sale of unregistered securities

U.S. federal judge Paul Engelmayer ruled that Coinbase must face a lawsuit from customers alleging it illegally sold securities without registering as a broker-dealer, Reuters reported. The judge rejected Coinbase’s defense that it was not a "statutory seller," citing claims that transactions on the platform occur directly with Coinbase. Previously, customers filed a class-action lawsuit, accusing the exchange of selling unregistered securities and failing to register as a broker-dealer, resulting in financial harm.