A class action lawsuit filed in a Georgia court alleges that crypto exchange Coinbase failed to secure users’ accounts from theft and hacking. Plaintiffs went to court seeking more than $5 million in damages.
According to alleged class action lawsuits filed last week against crypto exchange Coinbase, the company failed to secure its customers’ accounts, leaving them vulnerable to theft and unauthorized transfers.
Coinbase Facing Multiple Allegations in Litigation
The complaint, filed with the U.S. District Court for the Northern District of Georgia, accuses the company of causing financial damage by permanently or for long periods of time blocking users’ accounts and violating federal law by listing securities.
Coinbase, the first cryptocurrency exchange to go public in the US last year, is facing a string of lawsuits by unhappy investors. In addition to another class action lawsuit in New Jersey alleging that the company allowed US persons to trade in unregistered securities; A Coinbase shareholder accused the company of misleading investors about last year’s IPO. The platform is currently trying to settle two separate lawsuits filed by investors through arbitration.
John Herman, of Herman Jones LLC, the Georgia-based law firm that represents the plaintiffs, wrote:
“We are aware of many fraudulent transactions on Coinbase users’ accounts. We ask all Coinbase users to review their accounts and report any suspicious transactions to us immediately.”
The lawsuit cites that some of the alleged accusations persist at Coinbase, referring to a user returning to their account 6 months later in 2019.
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