The U.S. cryptocurrency exchange Coinbase has secured a dismissal of most of the allegations in a class-action lawsuit filed by its customers. The lawsuit alleged that Coinbase illegally sold unregistered securities, including XRP and Dogecoin.

Judge Paul Engelmayer of the U.S. District Court for the Southern District of New York dismissed all charges based on “match-to-order” transactions, which account for approximately 99.97% of Coinbase’s trading volume and involve hundreds of billions of dollars.The judge ruled that Coinbase did not qualify as a “statutory seller” under federal securities law in these transactions because it neither transferred ownership of the tokens to the buyers nor “solicited” the transactions by providing token overviews.

However, clients may still file claims regarding “inventory transactions” conducted by Coinbase using its own token inventory, which totaled at least $178 million. The judge noted that in these transactions, Coinbase acted as a dealer and underwriter, transferring ownership of the tokens to the buyers and thus qualifying as a statutory seller.

The case began in 2021, following the dismissal by Coinbase in 2023 of other federal securities law charges. The U.S. Securities and Exchange Commission (SEC) also dismissed a similar lawsuit against Coinbase in 2023.