Users of US-based crypto exchange Coinbase who sued the firm in October 2022 for unauthorized crypto transfers on the platform are reportedly stalling the case. In a December 2022 motion, Coinbase told the court that the firm and the users disagreed on “whether to include a provision in the protective order.”
Recently, Coinbase denied the users’ request to add a provision in the court order that details the organization will waive its right to arbitration, which was in the company’s terms of service.
In the Nov 18 emergency motion, Coinbase said, “Refusal to provide this basic information is an improper attempt to undermine Coinbase right to compel arbitration under the Federal Arbitration Act.”
Cyber scammers targeted social platforms like Whatsapp, Facebook and Twitter to convince users to download “Coinbase Wallet.” When the targeted users downloaded the wallet, attackers sent links to buy a voucher that seemed like a protected Coinbase trusted platform. But it was actually a malicious smart-contract that helped the hackers to steal the user’s funds.
Nearly a hundred Coinbase users across the world raised their voices against the crypto exchange for not taking any measures to protect users. According to a recently filed arbitration demand, “Coinbase took no remedial steps to fix the security flaw or even warn customers about this major problem, despite warning customers about other security risks.”
On August 15th, George Kattula filed a case on behalf of the appellant that the crypto exchange Coinbase didn’t take any safety measures to protect the customers from cyber hacks.
As per the lawsuit filed on behalf of Coinbase wallet and account holders, “Users who have had their accounts breached and incurred losses arising from the unauthorized transfer of assets and without Coinbase having registered as a securities exchange.”
Coinbase in Germany is having issues with BaFin
Coinbase in Germany is now facing business violation allegations as per the country’s regulations. BaFin alleged that Coinbase was violating its business rules. It advised Coinbase to adhere to certain regulations because it has crypto-related markets in the nation.
BaFin warned Coinbase after it allegedly violated the country’s business requirements. BaFin was established to promote financial stability and transparency in the country. It acts as the head of the financial services regulations in Germany. BaFin maintains the country’s economic stability through banks, credit institutions, insurance companies, and stock exchanges.
“Coinbase is a publicly traded company in the United States, and we have built our business in a way that allows us to be transparent about our track record, balance sheet strength and effectively and prudently manage risk for our customers and ourselves,” Brian stated.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.