THE DAILY ENCRYPT

October 3, 2022

Coinbase Gets Hit With Yet Another Lawsuit This Time $5 Million

Another lawsuit has been filed against the San Francisco-based exchange by a disgruntled customer....
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Another lawsuit has been filed against the San Francisco-based exchange by a disgruntled customer. Coinbase customers are suing San Francisco-based exchange, for $5 million, for failing to adequately secure customer accounts and “flouting” federal securities laws.

A Customer representing over 100 people, claims that the largest cryptocurrency exchange in the U.S. locked users from their accounts for long periods of time, causing financial harm.

George Kattula, a plaintiff, filed a lawsuit in the U.S. District Court for Northern Georgia. He also claims that Coinbase fails to disclose that crypto assets on its platform constitute securities. This “boldly flouts both federal and state laws.”

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The lawsuit states that Coinbase doesn’t follow standard practices to protect consumers’ accounts, contrary to what it claims. And Coinbase incorrectly and unreasonably blocks its customers from accessing their funds and accounts for extended periods or permanently.

Plaintiffs claim that the exchange crashed during market volatility, which can happen to crypto-exchanges. This made it difficult to withdraw cash. The lawsuit states that Coinbase’s user growth exceeds its ability to offer the account services and protections it promises consumers.

Further, the lawsuit claims that plaintiff’s assets are “vulnerable for theft.”

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The largest cryptocurrency exchange in America has been hit by a lot of customers recently. The exchange requested an emergency intervention from the U.S. Supreme Court to send two lawsuits that were recently filed to arbitration.

According to a Bloomberg report, the SEC is currently investigating this company for allowing U.S. citizens to trade unregistered securities.

This news came after federal and civil charges were filed against an ex-Coinbase product manager , who is accused of running an insider trading program. The SEC stated that the exchange lists many unregistered securities in its complaint against the ex-Coinbase employee.

Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".
Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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