Federal Judge Clears Path for SGT’s Coinbase Class Action, Upholding Investors’ Claims Over Unlicensed Securities Sales

February 7, 2025

A federal judge has ordered that a Silver Golub & Teitell class action lawsuit should move forward against Coinbase Global, Inc., which the platform’s users allege is operating an unlicensed securities exchange.

In his order, U.S. District Judge Paul Engelmayer denied Coinbase’s motion for judgment on the pleadings, noting that the Second Circuit Court of Appeals ruled last year that claims could move ahead.

“For the foregoing reasons, the Court denies Coinbase’s motion for judgment on the pleadings,” Judge Engelmayer wrote.

The Second Circuit ruled unanimously in April 2024 that claims under the U.S. Securities Act and the laws of California, Florida and New Jersey could proceed.

Silver Golub & Teitell Partners Ian Sloss and Steven Bloch represent the plaintiffs in the case, Underwood v. Coinbase Global, Inc., No. 21-cv-08353, in the Southern District of New York.

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