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Coinbase (COIN) stock up 24% after judge dismisses class action lawsuit

Coinbase stock soared after the dismissal of a federal securities suit.

Donovan Erskine

February 2, 2023 3:35 PM

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It’s been a rough several months for the crypto world, with the sudden collapse of FTX leading to a great deal of uncertainty around the rest of the industry. Despite some serious losses in recent memory, the crypto world just scored a huge win. Courts have dismissed a class action lawsuit against Coinbase (COIN), and the company’s stock is on the rise as a result.

The United States District Court dismissed a class action lawsuit against Coinbase (COIN) this week, which led to the jump in its stock. The lawsuit, which was brought against the crypto exchange last year, alleges that it sold multiple customers unregistered securities. The customers also claimed that Coinbase owned these assets, and was aware when it sold them. The judge described the plaintiff’s claims as contradictory and noted language in Coinbase’s user agreement that absolved them of any legal wrongdoing in this particular case.

The news of the lawsuit against Coinbase being dismissed was not only huge for the crypto exchange in question but the cryptocurrency community at large, which rarely pulls out legal victories on this scale. Since FTX’s collapse last year, there have been constant bankruptcy filings and layoffs as other companies tried to adjust to changing climates. Coinbase (COIN) was up as high at 24 percent on the news, and currently sits at a valuation of $81.46 per share.

Coinbase has seen some consistent growth since its stock was valued as low as $33.53 in December of 2022. It will be interesting to see how it performs in the long run now that the lawsuit has been dismissed. For future updates on what’s happening in cryptocurrency, stick with Shacknews.

Donovan Erskine

News Editor

Donovan is a journalist from Maryland. His oldest gaming memory is playing Pajama Sam on his mom's desktop during weekends. Pokémon Emerald, Halo 2, and the original Star Wars Battlefront 2 were some of the most influential titles in awakening his love for video games. After interning for Shacknews throughout college, Donovan graduated from Bowie State University in 2020 with a major in broadcast journalism and joined the team full-time. He is a huge film fanatic and will talk with you about movies and games all day. You can follow him on twitter @Donimals_