Coinbase Global, Inc. (Tokens Holders)

Investigation
10/08/2021

Initial Lawsuit
10/08/2021

Lawsuit Progression
01/11/2022

Investigation

Proposed Claim

Did Coinbase Global, Inc. fail to comply with securities laws by neither registering as a securities exchange nor as a broker-dealer? Are the consideration paid for tokens and trading fees to be returned to investors?

This post is open for investors to gather facts, and findings and track their exposure to related lawsuits. We invite investors and shareholders to contribute to this investigation for their own benefit, add events to the factual timeline below and vote on events’ pertinence.

A lawsuit was subsequently filed. We will update this post as it unfolds.

Main Event

See more on Factual Timeline

Initial Lawsuit

First Complaint - 10/08/2021

Plaintiff brought this federal securities class action on behalf of all persons and entities that purchased, sold, or otherwise transacted in securities on the online trading platform (Coinbase and Coinbase Pro) owned and operated by defendant Coinbase Global, Inc. from the beginning of any applicable limitations period through the date of certification.

Filing Date
10/08/2021
Transgression
Securities Violation
Filing Firms
Silver Golub & Teitell LLP
Case Title
Underwood v. Coinbase Global, Inc.
Docket Number
1:21-cv-08353
Court
New York Southern District Court
Free File
Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

Despite the fact that the Coinbase Digital Asset Platforms, as operated by Defendant Coinbase, meet the definition of an “exchange” under federal securities laws, Coinbase has not registered the Coinbase Digital Asset Platforms as national securities exchanges, nor does Coinbase operate the Coinbase Digital Asset Platforms pursuant to an exemption from registration.

Coinbase’s failure to so register is therefore a violation of Section 5 of the Exchange Act.

Defendants

Company
Coinbase Global, Inc.

Lawsuit progression

Docket Number
1:21-cv-08353
Court
New York Southern District Court

Lead Counsel

01/11/2022

The court issued an order appointing the lead plaintiff and lead counsel.

Lead Counsel
Selendy & Gay PLLC
Silver Golub & Teitell LLP
Lead Plaintiff
Group of Individuals
Free File
Order for lead

Amended Complaint

03/11/2022

Lead plaintiffs bring this amended complaint on behalf of all persons or entities who transacted in tokens on Coinbase and Coinbase Pro "between October 8, 2019 and the present" (*post updated with the filing of the complaint for information purposes). The tokens included are 1INCH, AAVE, ACH, ADA, AGLD, ALGO, AMP, ANKR, ARPA, ATOM, AUCTION, AXS, BAL, BAND, BAT, BNT, BOND, BTRST, CGLD, CLV, COMP, CRO, CRV, CTSI, CVC, DNT, DOGE, DOT, ENJ, EOS, FARM, FET, FIL, FORTH, GNT, GRT, GTC, ICP, IOTX, KEEP, KNC, LINK, LOOM, LRC, MANA, MATIC, MKR, MLN, NKN, NMR, NU, OGN, OMG, ORN, OXT, PLA, POLY, QNT, QUICK, RARI, REN, REP, RLC, SHIB, SKL, SNX, SOL, STORJ, SUSHI, TRB, TRIBE, UMA, UNI, XLM, XRP, XTZ, XYO, YFI, ZRX.