Coinbase shareholders, armed with pitchforks and legal pads, just got a federal blessing to press ahead with a lawsuit against the crypto giant.
The drama’s unfurling in the gritty courts of Newark, New Jersey, where US District Judge Brian Martinotti refused to toss out accusations that Coinbase pulled a classic Houdini on investors about the risks of an SEC smackdown.
Stay ahead in the crypto world – follow us on X for the latest updates, insights, and trends!🚀
Losing assets in case of bankruptcy?
The crux? Shareholders say Coinbase played it fast and loose by downplaying the risk of being sued by the Securities and Exchange Commission, the dreaded SEC saying, you’re an unregistered securities exchange! Investors were led to believe this was about as likely as a unicorn staking a claim on Wall Street.
Plus, Coinbase allegedly kept mum on the gnarly possibility of losing assets if bankruptcy hits. No small potatoes when you’re talking about vast piles of digital dough.
Judge Martinotti isn’t the kind to nose around for hidden clues, he even quipped, judges are not like pigs, hunting for truffles buried in briefs.
Translation, if you want to sling mud in court, you better mark your targets clearly.
This means vague group pleading accusations get the cold shoulder unless they’re backed by specifics. Lucky for the shareholders, those claims against certain Coinbase bigwigs will survive the legal pruning.
Crypto-friendly vibe
So who’s leading the charge? None other than the Swedish pension fund Sjunde AP-Fonden, rounding up Coinbase investors who held shares from April 2021 through June 2023.
The timing adds a lil spice you know. Earlier this year, the SEC dusted off its hands and dropped its own case against Coinbase, signaling a bit of regulatory détente under Trump’s appointee, Paul Atkins.
The new chair brought a more crypto-friendly vibe, slashing through red tape and ushering in clearer rules.
Even other big names like Uniswap, Robinhood, and Kraken dodged SEC lawsuits this year. The atmosphere’s warming, with crypto adoption cruising steadily.
No press release
Coinbase itself is mum, radio silence from both the exchange and shareholder lawyers.
No official reactions, no press releases.
But the market seems to love the tension. Coinbase’s stock ticker COIN rocketed nearly 12% to a juicy $347 after the judge’s ruling, riding the wave of Bitcoin’s resurgence which laughs in the face of gravity by flirting with all-time highs.
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.
Cryptocurrency and Web3 expert, founder of Kriptoworld
LinkedIn | X (Twitter) | More articles
With years of experience covering the blockchain space, András delivers insightful reporting on DeFi, tokenization, altcoins, and crypto regulations shaping the digital economy.
📅 Published: October 3, 2025 • 🕓 Last updated: October 3, 2025
✉️ Contact: [email protected]
