Coinbase hit by lawsuits from customers who had crypto stolen from their accounts
Top US-based crypto exchange Coinbase is facing a class-action lawsuit over its alleged failure to secure its customers’ accounts.
According to recent court documents, Coinbase customer George Kattula claims his account was hacked and crypto assets were stolen due to the platform’s failure to implement adequate safeguards against fraudulent activities.
“Contrary to its representations, Coinbase does not use standard practices to keep consumers’ accounts secure.”
Kattula claims that in April, nearly $6,000 worth of digital assets in his account were transferred to unknown wallets after he attempted to change his password as indicated by an email purporting to be from Coinbase.
“Coinbase failed to delay the processing or execution of the above suspicious activity on the plaintiff’s account.
Coinbase-authorized unknown parties also attempted to purchase additional cryptocurrency “on margin,” that is, with money borrowed from Coinbase.
On April 28, 2022, Coinbase allowed the hackers who breached Plaintiffs’ Coinbase account to withdraw $1,000 from Plaintiffs’ bank account.”
The plaintiff, who is bringing the class action on behalf of other Coinbase customers, also alleges that the exchange is locking users out of their accounts, leading to financial losses due to the volatile price of cryptoassets.
He also accuses the firm of not disclosing that it has securities on the platform.
“Coinbase wrongfully and unreasonably excludes its consumers from accessing their accounts and funds, either for extended periods or permanently. Due to the extreme volatility of the cryptocurrency’s value – with a free fall of 40% within 24 hours not unheard of – leading inability to access an account to sell, buy or trade cryptocurrency to serious financial losses for account holders.”
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Featured image: Shutterstock/YanaBu
