SDNY on March 13 held a hearing in Heabeart et al v. Coinbase, Inc. et al regarding Coinbase’s actions when Terraform Labs’ LUNA collapsed in May 2022. U.S. District Court for the Southern District of New York Judge Jed S. Rakoff presided, with Inner City Press providing live coverage. The proceedings touched on arbitration clauses, Coinbase’s choice of venue, and disclosures from the SEC case related to Coinbase.
The amended complaint asserts Coinbase announced that WLUNA trading would be temporarily suspended, yet Coinbase says no record supports such a statement. Attorneys debated quotation marks and wording, and Judge Rakoff pressed both sides for clarification, warning that sanctions could be imposed if deficiencies persisted. A $10,000 sanction was mentioned during the discussion.
On March 16, the court granted plaintiffs leave to file a Second Amended Complaint by March 20, 2026, and said sanctions issues would be considered before April 15. The ruling keeps the focus on whether the trading suspension and venue choices were appropriate amid the Terra LUNA saga.
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