In a federal court in Georgia, USA, a new class action against cryptocurrency exchange Coinbase. According to the accusations, the trading platform illegally moved assets, froze funds and blocked money in client accounts for a long time. As a result of these actions, exchange users suffered significant losses due to the volatility of cryptocurrencies.
Coinbase wallet owners and account holders allege that their account privacy has been compromised and they have suffered losses due to the unauthorized movement of their funds.
According to George Cattula, the main plaintiff, he received an email from the platform team in which the exchange asked him to change his password. After that, cryptocurrencies in the amount of about $6,000 were withdrawn from his account. This money was transferred to unknown parties. At the same time, the exchange ignored all attempts by the plaintiff to ensure the security of his account.
The lawsuit alleges that “Coinbase is wrongfully and unreasonably blocking its users from accessing their own accounts and funds, either for an extended period of time or permanently. Due to the extreme volatility of cryptocurrencies, which tend to free fall by about 40% within 24 hours, the inability to access your account to sell, buy or exchange cryptocurrencies leads to serious financial losses for account holders.
In addition, the plaintiff alleges that Coinbase failed to respond to users’ requests for support and assistance in a timely manner, failed to preserve and protect clients’ assets as promised, and allowed hackers to withdraw $1,000 from his bank account.
“While Coinbase canceled the $1,000 unauthorized transfer, it froze the account and refused to refund all the stolen crypto,” Cattula explains.
This is far from the first lawsuit against Coinbase. The exchange has already been repeatedly criticized by its investors, outraged by the losses incurred as a result of the actions of the platform’s management.
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