On October 8, 2021, Christopher Underwood, Louis Oberlander and Zeneyda Patin (collectively, “Plaintiffs”), individually and on behalf of all others similarly situated, represented by Ian Wise Sloss of Silver Golub & Teitell LLP, filed a civil action against Coinbase Global, Inc. (“Coinbase” or “Defendant”), seeking declaratory and injunctive relief along with damages, pre-judgment and post-judgment interest, restitution, rescission, disgorgement, and attorneys’ fees and costs for the Defendant’s alleged concealment of the nature of the Digital Asset Securities listed on the Coinbase Digital Asset Platforms and therefore concealing that the Coinbase Digital Asset Platforms are “exchanges”. This case was filed in U.S. District Court in the Southern District of New York with Judge Paul A. Engelmayer presiding.
In the complaint, Plaintiffs alleged that, “Coinbase operates two digital asset trading platforms: Coinbase and Coinbase Pro (the “Coinbase Digital Asset Platforms”) that each and together meet the definition of an “exchange” under federal securities laws. The Coinbase Digital Asset Platforms, at the agreement of its users (1) bring together the orders for digital assets that are investment contracts, and therefore securities (“Digital Asset Securities”), of multiple buyers and sellers; and (2) use established, non-discretionary methods under which Coinbase Digital Asset Platforms users’ orders interact with each other.”
Plaintiffs further alleged 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.”
Plaintiffs list out four claims for relief. The first claim alleged is for contracts with an unregistered exchange section(s) 5 and 29(b) of the Exchange Act. The second claim alleged is for unregistered broker-dealer sections(s) 15(a)(1) and 29(b) of the Exchange Act. The third claim alleged is for transacting business as an unlicensed broker-dealer Cal. Corp. Code § 25501.5(a). The fourth claim alleged is for transacting business as an unregistered dealer Fla. Stat. § 517.2111.
In the prayer for relief, Plaintiffs requested the Court for an order certifying this action and the Class and Subclasses requested herein as a class action and declaring that Defendant’s actions constitute violations of the federal and state laws set forth above and that Defendant is liable to Plaintiffs, the Class, and the Subclasses, for damages arising therefrom. Plaintiffs further requested the Court for an injunction enjoining Defendant from offering the Digital Asset Securities for purchase or sale on the Coinbase Digital Asset Platforms without having registered the Coinbase Digital Asset Platforms as national securities exchanges or broker-dealers as required by the federal securities laws and an award of appropriate damages, rescission, restitution, disgorgement and prejudgment and post-judgment interest together with costs of litigation.
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Pending - Other Pending
Paul A. Engelmayer
COINBASE GLOBAL, INC.
Ian Wise Sloss
Attorney at Silver Golub & Teitell LLP
184 Atlantic Street
Stamford, CT 06901
C UNDERWOOD CERTIFICATION
L OBERLANDER CERTIFICATION
Z PATIN CERTIFICATION
Docket(#5) AFFIDAVIT OF SERVICE of Summons and Complaint,. Coinbase Global, Inc. served on 10/13/2021, answer due 11/3/2021. Service was accepted by PATRICK DUFFY, REGISTERED AGENT. Document filed by Christopher Underwood; Zeneyda Patin; Louis Oberlander..(Sloss, Ian) (Entered: 10/15/2021)Read MoreRead Less
Docket(#4) ELECTRONIC SUMMONS ISSUED as to Coinbase Global, Inc...(gp) (Entered: 10/12/2021)Read MoreRead Less
DocketCase Designated ECF. (gp) (Entered: 10/12/2021)Read MoreRead Less
DocketMagistrate Judge Debra C. Freeman is so designated. Pursuant to 28 U.S.C. Section 636(c) and Fed. R. Civ. P. 73(b)(1) parties are notified that they may consent to proceed before a United States Magistrate Judge. Parties who wish to consent may access the necessary form at the following link: #https://nysd.uscourts.gov/sites/default/files/2018-06/AO-3.pdf. (gp) (Entered: 10/12/2021)Read MoreRead Less
DocketCASE OPENING INITIAL ASSIGNMENT NOTICE: The above-entitled action is assigned to Judge Paul A. Engelmayer. Please download and review the Individual Practices of the assigned District Judge, located at #https://nysd.uscourts.gov/judges/district-judges. Attorneys are responsible for providing courtesy copies to judges where their Individual Practices require such. Please download and review the ECF Rules and Instructions, located at #https://nysd.uscourts.gov/rules/ecf-related-instructions..(gp) (Entered: 10/12/2021)Read MoreRead Less
Docket***NOTICE TO ATTORNEY REGARDING PARTY MODIFICATION. Notice to attorney Ian Wise Sloss. The party information for the following party/parties has been modified: All parties. The information for the party/parties has been modified for the following reason/reasons: party name was entered in all caps. (gp) (Entered: 10/12/2021)Read MoreRead Less
Docket(#3) REQUEST FOR ISSUANCE OF SUMMONS as to COINBASE GLOBAL, INC., re: #1 Complaint,. Document filed by LOUIS OBERLANDER, ZENEYDA PATIN, CHRISTOPHER UNDERWOOD..(Sloss, Ian) (Entered: 10/10/2021)Read MoreRead Less
Docket(#2) CIVIL COVER SHEET filed..(Sloss, Ian) (Entered: 10/08/2021)Read MoreRead Less
Docket(#1) COMPLAINT against COINBASE GLOBAL, INC.. (Filing Fee $ 402.00, Receipt Number ANYSDC-25175095)Document filed by CHRISTOPHER UNDERWOOD, ZENEYDA PATIN, LOUIS OBERLANDER. (Attachments: #1 C UNDERWOOD CERTIFICATION, #2 L OBERLANDER CERTIFICATION, #3 Z PATIN CERTIFICATION).(Sloss, Ian) (Entered: 10/08/2021)Read MoreRead Less
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