2023-06-06 SEC Press pdf 1065 KB 4,273 chars

SEC v. COINBASE INC, No. 1:23-cv-04738, Southern District of New York (June 6, 2023)

raw: Defendants Coinbase, Inc. ("Coinbase") and Coinbase Global, Inc. ("CGI") (collectively, the

Defendants Coinbase, Inc. ("Coinbase") and Coinbase Global, Inc. ("CGI") (collectively, the, No. 1:23-cv-04738 (S.D.N.Y. June 6, 2023)

Caption: SEC v. COINBASE INC

Exhibit of SEC Announces Dismissal of Civil Enforcement Action Against Coinbase

Source PDF JSON

summary

The SEC accused Coinbase, Inc. and Coinbase Global, Inc. of alleged securities law violations and the case was dismissed with prejudice.

paragraph

The U.S. Securities and Exchange Commission sued Coinbase, Inc. and its affiliate Coinbase Global, Inc. in a civil enforcement action filed on June 6, 2023 alleging securities-law violations. The complaint did not specify key dollar amounts or detailed fraud allegations. The case was dismissed with prejudice on February 27, 2025, with Coinbase withdrawing its petition for an interlocutory appeal and agreeing to waive any fee-recovery or other claims against the SEC.

narrative

The U.S. Securities and Exchange Commission sued Coinbase, Inc. and its affiliate Coinbase Global, Inc. in a civil enforcement action filed on June 6, 2023 alleging securities-law violations related to the companies’ crypto-asset activities. The complaint did not specify key dollar amounts or detailed fraud allegations, but the SEC’s complaint sought to hold the firms accountable for the conduct described in the complaint. The case had previously undergone a partial motion for judgment on the pleadings, with the court granting part of Coinbase's motion. On February 27, 2025, the parties entered a joint stipulation that dismisses the case with prejudice, with Coinbase withdrawing its petition for an interlocutory appeal and agreeing to waive any fee-recovery or other claims against the SEC. The dismissal resolves the litigation without costs or fees to either side and does not affect the SEC’s stance on any other pending matters. The SEC, in light of ongoing regulatory developments, including the launch of a crypto task force, decided to dismiss the case with prejudice.

Enriched metadata

Scheme: crypto-securities (80%)
Court: Southern District of New York
Case No.: 1:23-cv-04738

Classified crypto-securities(confidence 80%). EDGAR detection: forms 1-A/S-1/8-K· recall 43% / precision 2%. detection rule →

Extracted insights

Dollar amounts 1

$1K $ 1292 <$10K

Entities 1

person mark t. uyeda

Triples 11

Securities and Exchange Commission Filed Complaint June 6, 2023
Court Entered Order March 27, 2024
Court Granted Motion in part and denied in part
Defendants Moved To Certify interlocutory appeal under 28 U.S.C. § 1292(b)
Court Granted Motion January 7, 2025
Mark T. Uyeda Launched Crypto Task Force January 21, 2025
Commission Believes Dismissal appropriate
Commission and Defendants Agree To Dismiss Litigation
Defendants Agree To Withdraw petition for permission to file an appeal
Defendants Withdraw Request interlocutory appeal under 28 U.S.C. § 1292(b)
Defendants Waive And Release rights under the Equal Access to Justice Act and related statutes

PDF

Defendants Coinbase, Inc. ("Coinbase") and Coinbase Global, Inc. ("CGI") (collectively, the · Source

Text layers

Extracted body text (4,273c)

UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK
SECURITIES AND EXCHANGE COMMISSION,
Plaintiff,
V.
COINBASE, INC. and COINBASE GLOBAL, INC.
Defendants.
23 Civ. 4738 (KPF)
JOINT STIPULATION TO DISMISS, AND RELEASES
Plaintiff Securities and Exchange Commission (the "Commission" or the "SEC") and
Defendants Coinbase, Inc. ("Coinbase") and Coinbase Global, Inc. ("CGI") (collectively, the
"Defendants") respectfully submit this joint stipulation.
WHEREAS, the Commission filed its complaint in this civil enforcement action (the
"Litigation") on June 6, 2023.
WHEREAS, on March 27, 2024, the Court entered an order on Defendants' motion for
judgment on the pleadings, in which the Court granted the motion in part and denied the motion
in part. SEC v. Coinbase Inc., et al., 726 F. Supp. 3d 260 (S.D.N.Y. Mar. 27, 2024), motion to
certify appeal granted, No. 23 CIV. 4738 (KPF), 2025 WL 40782 (S.D.N.Y. Jan. 7, 2025).
WHEREAS, Defendants moved to certify an interlocutory appeal under 28 U.S.C.
§ 1292(b) ofthe Court's March 27, 2024 Order and this Court granted such motion on January 7,
2025.
WHEREAS, on January 21, 2025, the Commission's Acting Chairman Mark T. Uyeda
launched a crypto task force dedicated to helping the Commission develop the regulatory
framework for crypto assets.

WHEREAS, in light of the foregoing, and in the exercise of its discretion and as a policy
matter, the Commission believes the dismissal ofthis case is appropriate.
WHEREAS, the Commission's decision to seek dismissal ofthis Litigation does not
necessarily reflect the Commission's position on any other case.
WHEREAS, by this stipulation, the Commission and the Defendants agree to have this
Litigation dismissed, and Defendants agree to withdraw their petition for permission to file an
appeal under 28 U.S.C. $ 1292(b) (see Coinbase, Inc. v. SEC, No. 25-145 (2d Cir.)), and to the
dismissal of any such appeal.
NOW, THEREFORE,
1.Pursuant to Fed. R. Civ. P. 4l(a)(l)(A)(ii), the Commission and the Defendants
stipulate that this Litigation be dismissed with prejudice as to the conduct alleged in the
Complaint through the date ofthe filing ofthis Stipulation, and without costs or fees to either
party.
2.Defendants withdraw their request for an interlocutory appeal under 28 U.S.C. S
l 292(b) and will file with the Court ofAppeals for the Second Circuit any papers necessary to
effectuate such withdrawal and the dismissal of any such appeal.
3.Defendants, for themselves and any oftheir agents, attorneys, employees, or
representatives, hereby waive and release:
a. Any and all rights under the Equal Access to Justice Act, the Small Business
Regulatory Enforcement Fairness Act of 1996, or any other provision oflaw to
seek from the United States, or any agency, or any official ofthe United States
acting in his or her official capacity, directly or indirectly, reimbursement of
attorney's fees or other fees, expenses, or costs expended by Defendant[s] that
in any way relate to (i) the Litigation, including but not limited to investigative
steps taken prior to commencing the Litigation, (ii) the petition for interlocutory
review, and (iii) the appeal of the Litigation.
2

b. Any and all claims, demands, rights, and causes of action of every kind and
nature, asserted or unasserted, against the Commission and its present and
former officers or employees that arise from or in any way relate to (i) the
Litigation, including but not limited to investigative steps taken prior to
commencing the Litigation, (ii) the petition for interlocutory review, and (iii) the
appeal ofthe Litigation.
4.Each ofthe undersigned represents that they have the authority to execute this
stipulation on behalfofthe party so indicated.
STIPULATED AND AGREED:
.s.as
Acting Director
ANTONIAM. APPS
Acting Deputy Director
Enforcement Division
SECURITIES AND EXCHANGE
COMMISSION
NICHOLAS C. MARGIDA
COUNSEL FOR PLAINTIFF
SECURITIES AND EXCHANGE
COMMISSION
Dated: fhra4y 27 ,2025
I
wt7KMsAVITT
KEVINS. SCHWARTZ
SARAH K. EDDY
WACHTELL, LIPTON, ROSEN & KATZ
51 WEST 52N STREET
NEW YORK, NEW YORK 10019
STEVENR. PEIKIN
SULLIVAN & CROMWELL LLP
125 BROAD STREET
NEW YORK, NEW YORK 10004
COUNSEL FOR DEFENDANTS
COINBASE, INC. AND COINBASE,
GLOBAL, INC.
Dated: February 25 ,2025
3

OCR text (4,566c · tika · 95% conf)

UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEWYORK

SECURITIES AND EXCHANGE COMMISSION,

Plaintiff,

COINBASE, INC. and COINBASE GLOBAL, INC.
Defendants.

23 Civ. 4738 (KPF)

JOINT STIPULATION TO DISMISS, AND RELEASES

Plaintiff Securities and Exchange Commission (the "Commission" or the "SEC") and

Defendants Coinbase, Inc. ("Coinbase") and Coinbase Global, Inc. ("CGI") (collectively, the

"Defendants") respectfully submit this joint stipulation.

WHEREAS, the Commission filed its complaint in this civil enforcement action (the

"Litigation") on June 6, 2023.

WHEREAS, on March 27, 2024, the Court entered an order on Defendants' motion for

judgment on the pleadings, in which the Court granted the motion in part and denied the motion

in part. SEC v. Coinbase Inc., et al., 726 F. Supp. 3d 260 (S.D.N.Y. Mar. 27, 2024), motion to

certify appeal granted, No. 23 CIV. 4738 (KPF), 2025 WL 40782 (S.D.N.Y. Jan. 7, 2025).

WHEREAS, Defendants moved to certify an interlocutory appeal under 28 U.S.C.

§ 1292(b) of the Court's March 27, 2024 Order and this Court granted such motion on January 7,

2025.

WHEREAS, on January 21, 2025, the Commission's Acting Chairman Mark T. Uyeda

launched a crypto task force dedicated to helping the Commission develop the regulatory

framework for crypto assets.

Case 1:23-cv-04738-KPF Document 176 Filed 02/27/25 Page 1 of 3

WHEREAS, in light of the foregoing, and in the exercise of its discretion and as a policy

matter, the Commission believes the dismissal of this case is appropriate.

WHEREAS, the Commission's decision to seek dismissal of this Litigation does not

necessarily reflect the Commission's position on any other case.

WHEREAS, by this stipulation, the Commission and the Defendants agree to have this

Litigation dismissed, and Defendants agree to withdraw their petition for permission to file an

appeal under 28 U.S.C. $ 1292(b) (see Coinbase, Inc. v. SEC, No. 25-145 (2d Cir.)), and to the

dismissal of any such appeal.

NOW, THEREFORE,

1. Pursuant to Fed. R. Civ. P. 4l(a)(l)(A)(ii), the Commission and the Defendants

stipulate that this Litigation be dismissed with prejudice as to the conduct alleged in the

Complaint through the date of the filing of this Stipulation, and without costs or fees to either

party.

2. Defendants withdraw their request for an interlocutory appeal under 28 U.S.C. S

l 292(b) and will file with the Court ofAppeals for the Second Circuit any papers necessary to

effectuate such withdrawal and the dismissal of any such appeal.

3. Defendants, for themselves and any of their agents, attorneys, employees, or

representatives, hereby waive and release:

a. Any and all rights under the Equal Access to Justice Act, the Small Business
Regulatory Enforcement Fairness Act of 1996, or any other provision oflaw to
seek from the United States, or any agency, or any official of the United States
acting in his or her official capacity, directly or indirectly, reimbursement of
attorney's fees or other fees, expenses, or costs expended by Defendant[s] that
in any way relate to (i) the Litigation, including but not limited to investigative
steps taken prior to commencing the Litigation, (ii) the petition for interlocutory
review, and (iii) the appeal of the Litigation.

Case 1:23-cv-04738-KPF Document 176 Filed 02/27/25 Page 2 of 3

4. Each of the undersigned represents that they have the authority to execute this

stipulation on behalf of the party so indicated.

STIPULATED ANDAGREED:

.s.as
Acting Director
ANTONIAM. APPS
Acting Deputy Director
Enforcement Division
SECURITIES AND EXCHANGE
COMMISSION

NICHOLAS C. MARGIDA
COUNSEL FOR PLAINTIFF
SECURITIES AND EXCHANGE
COMMISSION

Dated: fhra4y 27 ,2025
I

wt7KM sAVITT
KEVIN S. SCHWARTZ
SARAH K. EDDY
WACHTELL, LIPTON, ROSEN & KATZ
51 WEST 52N STREET
NEW YORK, NEW YORK 10019

STEVEN R. PEIKIN
SULLIVAN & CROMWELL LLP
125 BROAD STREET
NEW YORK, NEW YORK 10004

COUNSEL FORDEFENDANTS
COINBASE, INC. AND COINBASE,
GLOBAL, INC.

Dated: February 25 ,2025

Case 1:23-cv-04738-KPF Document 176 Filed 02/27/25 Page 3 of 3