Underwood v. Coinbase Global Inc.

Underwood sues Coinbase for (1) The alleged offering and sale of unregistered securities, (2) Entrance into illegal contracts with users, and (3) Violations of individual state laws regarding the sale of unregistered securities. The district court dismissed this case finding that Coinbase was a secondary marketplace, therefore not liable for the solicitation of sales. On appeal, the Second Circuit Court of Appeals found that claims (1) and (3) could proceed, but dismissed the second claim.

The remaining federal legal issue is whether Coinbase's digital tokens qualify as unregistered securities.

1:21-cv-08353