Crypto is a nascent space overall and vulnerable to the risks of hacks and thefts, etc. Companies and institutions into crypto need to take extra precautions when it comes to provide security and safety of users and their assets. Coinbase like companies are expected to play their role with responsibility that set an example for others. However, the leading US crypto exchange is up to face a class action lawsuit.
Allegations on Coinbase stated that the firm did not provide proper security to customers accounts. The lack of security made the accounts prone to the attack and any unauthorized transfers could be initiated from them. Citing all these instances, allegations led to the legal actions against the crypto exchange.
The plaintiff filed the case against Coinbase in the Northern Georgia Districts’ US District Court. He also claimed the crypto exchange’s actions caused financial losses to its users. The firm locked users’ accounts for a long time and it also did not follow the federal law during the listing of securities over its platform, the complaint alleged.
Many Lawsuits for Coinbase to Deal With
In 2021, Coinbase turned out to be the first crypto exchange ever to be publicly listed within the country. Now the firm is stuck with a bunch of lawsuits filed by unsatisfied users. Recent lawsuit is yet another instance added up to the previous ones.
Earlier a class action lawsuit was also filed against Coinbase in New Jersey. The lawsuit alleged the exchange platform enabled its users within the US for trading unregistered securities.
Additionally, a shareholder of the company put allegations of puzzling investors with false claims. Apart from these, Coinbase has two other lawsuits to deal with that were filed by their own investors. Such instances could damage the image of Coinbase resulting in share price decline.
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