Coinbase Judge Tears Apart Token Holders’ Securities Fraud Case

Coinbase Global Inc. customers who held tokens allegedly pegged to Terraform Labs’ LUNA coin can’t proceed with their lawsuit for a host of reasons, a federal judge in Manhattan said, explaining his earlier ruling tossing their case.

The token holders failed to adequately plead any aspect of their securities fraud claims against Coinbase, Judge Jed S. Rakoff said Thursday for the US District Court for the Southern District of New York. The claims are also untimely, he said.

The 82-year-old jurist’s opinion hinges to some degree on a fluency in blockchain-specific concepts and terminology, highlighting the demands on courts hearing ...