Coinbase investor lawsuit advances as judge allows bankruptcy, SEC risk claims to proceed

A federal judge has allowed parts of an investor class-action lawsuit against Coinbase and certain executives to proceed, preserving claims that the company misled investors by concealing potential bankruptcy risks and downplaying the possibility of an SEC investigation. U.S. District Judge Katherine Polk Failla ruled on August 20 that the surviving claims could enter discovery while dismissing several other allegations. Filed in August 2022, the case does not establish liability or prove wrongdoing, but could bring internal communications and other evidence about Coinbase’s risk disclosures before the court.

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