Coinbase to face revived lawsuit by customers


FILE PHOTO: A smartphone with displayed Coinbase logo and representation of cryptocurrencies are placed on a keyboard in this illustration taken, June 8, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

NEW YORK (Reuters) - A federal appeals court on Friday revived a lawsuit by Coinbase customers who accused the largest U.S. cryptocurrency exchange of illegally selling unregistered securities and failing to register as a broker-dealer.

The 2nd U.S. Circuit Court of Appeals in Manhattan said a lower court judge should not have relied on a December 2021 user agreement to find that Coinbase did not hold title to, and was not the seller of, 79 tokens that the customers traded.

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