The impeachment of Coinbase’s chief product officer seemed to be the key to the exchange returning to the bright side of the polls. However, nothing goes as planned and the crypto platform is bent under the accusations. Currently, a case of alleged breaches in the security of user accounts could again sink it.
An accumulation of dark clouds for Coinbase
Coinbase (CORNER) has been chasing reviews for a few months. Complaints began piling up after news broke of the SEC’s investigation into the exchange. Indeed, many users accuse the exchange of failing to protect their accounts from theft and hacking.
As a result, a class action lawsuit was filed in the U.S. District Court for the Northern District of Georgia last week. The latter also accuses the crypto company of violating federal law by listing securities on its platform. In addition, it has harmed its users by excluding them from their accounts for long periods of time, even permanently.
The lawsuit in Georgia, whose main plaintiff is George Kattula, represents more than 100 people. However, the latter’s lawyers say there could be many more victims. They therefore also invite account holders to examine their accounts and inform them of any suspicious activity.
Excess success for the crypto society?
Last year, Coinbase became the first crypto exchange to go public in the United States. However, a series of lawsuits could damage the reputation of the platform which is already in bad shape currently. In addition to the lawsuit in Georgia, another class action lawsuit has been filed in New Jersey.
And earlier this month, a Coinbase shareholder filed charges against the company. He accuses him in particular of having misled the negotiators about the public listing last year. Kattula’s dossier details some of Coinbase’s misdeeds. And for the sentence, the prosecution seeks damages amounting to more than 5 million dollars excluding costs and attorneys’ fees.
Georgia’s class action lawsuit could have serious implications for the exchange. In addition to the astronomical sum requested, the plaintiffs are also asking for a binding judgment and an injunction that will prohibit the parties involved from carrying out certain activities. Meanwhile, Coinbase must also settle two separate claims filed by investors through arbitration.
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