Aggrieved Coinbase Customers Locked Out of their Accounts Drag Exchange To Court
Leading crypto exchange platform Coinbase has been sued in a proposed class action accusing the company of locking six users out of their accounts.
Coinbase Users File Complaint, Seek $5Million
According to a complaint filed in San Francisco federal court complaint, the Coinbase users allege that the company prevented them from accessing their accounts.
This stopped them from investing during peak trading periods or withdrawing their funds. The complaint reads,
“Coinbase” engage[d] in a scheme … [that] prevents its consumers from accessing their accounts and/or funds for arbitrary reasons and arbitrary amounts of time, and thereby … unable to ‘invest, spend, save, earn, and use,' or even withdraw their funds.”
One of the plaintiffs, Joseph Treseder of Oklahoma, said he deposited $30,000 in Dec 2020 to purchase the XRP token only to receive an error message saying his login credentials were invalid.
Treseder said he contacted the company severally through different means to verify his identity, but the Bitcoin exchange has still not rectified the issue.
Another complainant, Michael Leone, also said he sent over 100 emails to Coinbase's customer service email address but never received a response.
All six Coinbase users who filed the complaint recounted similar tales of being unable to reach the company.
The users seek over $5 million for damages. They also claim to be representing other aggrieved Coinbase users who have been unable to access their account for a long period.
A Look At Coinbase's Past Lawsuits
Coinbase is not new to lawsuits. Last year the company settled a legal complaint filed by the victims of the now-defunct crypto exchange Cryptsy for around $1 million.
Cryptsy accused Coinbase of being involved in laundering funds that made it lose around 13,000 Bitcoin (BTC) and 300,000 Litecoin (LTC) to hackers in 2016. The former exchange alleged that Coinbase abetted the theft and facilitated the laundering of approximately $8.2 million in digital currencies. BTC -1.16% Bitcoin / USD BTCUSD $ 43,239.26
-$501.58-1.16% Volume 31.19 b Change -$501.58 Open $43,239.26 Circulating 18.83 m Market Cap 814.11 b 3 h Govt. Doesn't “Do Banking Well,” JPMorgan CEO says It’s All About Transparency, Rule Of Law, And Governance 9 h South Korea’s Largest Crypto Exchange Operator Raises $85 Million at an $8.65 Billion Valuation 2 d Senator Toomey Urges US Lawmakers to Adopt Crypto and Gain 'Huge' Advantage over China LTC -2.28% Litecoin / USD LTCUSD $ 149.51
-$3.41-2.28% Volume 2.75 b Change -$3.41 Open $149.51 Circulating 66.75 m Market Cap 9.98 b 5 d Lloyds to Auction off Vehicles from Mad Max FURY Road Film, Crypto Accepted 5 d AMC Theaters CEO Is Considering Adding Payment Support for DOGE By Year-End 1 w Interactive Brokers Founder Already Red Pilled, Has Been “Itching” to Offer Crypto Trading for a Long Time
The company faced another over its handling of the Bitcoin Cash (BCH) fork and one more in December 2020 over the sales of XRP tokens. BCH -1.97% Bitcoin Cash / USD BCHUSD $ 501.18
-$9.87-1.97% Volume 5.51 b Change -$9.87 Open $501.18 Circulating 18.86 m Market Cap 9.45 b 5 d Lloyds to Auction off Vehicles from Mad Max FURY Road Film, Crypto Accepted 5 d AMC Theaters CEO Is Considering Adding Payment Support for DOGE By Year-End 1 w Interactive Brokers Founder Already Red Pilled, Has Been “Itching” to Offer Crypto Trading for a Long Time
Coinbase was sued by an investor after the US SEC sued Ripple. The lawsuit was proposed alleging that the exchange sold XRP after knowing it was an unregistered security and not a commodity and also gained commission on the XRP sales. XRP -1.48% XRP / USD XRPUSD $ 0.94
-$0.01-1.48% Volume 3.04 b Change -$0.01 Open $0.94 Circulating 46.72 b Market Cap 43.94 b 9 h South Korea’s Largest Crypto Exchange Operator Raises $85 Million at an $8.65 Billion Valuation 5 d SEC Scores Minor Victory Against Ripple As Court Rejects Employee Trading History Motion 1 w Solana (SOL) Dominating Institutional Interest, Accounting for Over 86% of the Total Inflows
Crypto platforms have faced class-action lawsuits several times.
Last year, California-headquartered Ripple was sued by investors who alleged that the XRP token falls under the category of securities.