Coinbase stock up 21% following lawsuit dismissal

Quick Take

  • Shares of crypto exchange Coinbase were up 21% on Thursday.
  • A lawsuit against the company was dismissed by a judge on Wednesday afternoon.
  • Crypto stocks have rallied in the past day following the Fed’s decision to raise interest rates by 25 basis points.

Shares of Coinbase have been rallying since Wednesday afternoon after a federal judge dismissed a lawsuit against the company.

The stock was up by roughly 21%, trading at around $78.7 as of 1 p.m. EST Thursday, according to data from TradingView.

Coinbase Chart by TradingView 

The proposed class-action suit, filed in the U.S. District Court for the Southern District of New York in 2021, alleged that Coinbase facilitated the sale of unregistered securities.

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A federal judge dismissed the case on Wednesday, according to a report from Bloomberg. Although the judge didn't actually determine whether those digital assets were securities, he decided that the exchange didn’t actively solicit investments through its marketing materials.

Crypto markets generally soared following the Federal Reserve’s decision to raise interest rates by 25 basis points on Wednesday. Bitcoin is trading at around $23,896, up by 4.1%.

Although some investors believe bitcoin has bottomed,  “market conditions continue to suggest Bitcoin/crypto traders remain uncertain of the future with BTC futures mostly flat,” Stephane Oullette, CEO of FRNT Financial, told The Block.


© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Catarina is a reporter for The Block based in New York City. Before joining the team, she covered local news at Patch.com and at the New York Daily News. She started her career in Lisbon, Portugal, where she worked for publications such as Público and Sábado. She graduated from NYU with a MA in Journalism. Feel free to email any comments or tips to [email protected] or to reach out on Twitter (@catarinalsm).

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