In February 2023, Coinbase successfully dismissed a lawsuit from 2021 but recently saw part of it revived by a US appeals court. The case accuses Coinbase of trading securities without registration. Judge Paul Engelmayer initially ruled in favor of Coinbase, stating that the company, not claiming ownership of the 79 disputed tokens, wasn't the direct seller. Engelmayer's decision also included that the plaintiffs couldn't reverse their transactions due to insufficient evidence of a formal agreement allowing such actions. The appellate court agreed, emphasizing the absence of a specific contract for rescission.