A federal judge has granted Coinbase (COIN) shareholders the opportunity to move forward with a narrowed lawsuit against the US-based cryptocurrency exchange, alleging that the company concealed alleged “business risks,” including the possibility of being sued by the Securities and Exchange Commission (SEC).

Claims Against Coinbase

The ruling , issued by US District Judge Brian Martinotti in Newark, New Jersey, comes as a response to claims that Coinbase misled investors regarding its regulatory standing and the safety of their assets. The Judge rejected requests from the crypto exchange executives and directors to dismiss the lawsuit entirely.

The shareholders contend that the company misrepresented the likelihood of an SEC lawsuit regarding its operations as an unregistered secu

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