Reuters reported that on Friday, a U.S. federal judge ruled that crypto exchange Coinbase must face lawsuits from customers who accused the exchange of illegally selling securities without registering as a broker-dealer. U.S. District Judge Paul Engelmayer in Manhattan, New York, rejected Coinbase's argument that Coinbase did not qualify as a "legal seller" under federal securities laws because it had never transferred ownership of the 79 tokens traded by customers. The judge cited the charge: "Customers on Coinbase only traded with Coinbase itself," which was enough to conclude that Coinbase was the seller. Engelmayer also refused to dismiss charges under California, Florida and New Jersey law, saying customers had sufficiently accused Coinbase of being a seller directly selling the tokens. Coinbase said in a statement: "Coinbase does not list, offer or sell securities on its exchanges. We look forward to defending the remaining charges in District Court."