The class action lawsuit concerned alleged cybersecurity failures on the part of Coinbase and seeks to compensate customers who allegedly had their accounts breached and “incurred losses arising from the unauthorized transfer of assets.”

In the filing, the plaintiff alleged he had $6,000 of cryptocurrency drained from his wallet to an address he had never interacted with before. It adds that Coinbase allowed the hackers who breached his account to withdraw $1,000 from his bank account.

After contacting his bank, the transaction was reversed, but Coinbase then locked his account, labeling it with a negative account balance. The crypto firm later retrieved the $1,000 that the hackers stole from the plaintiff. 

In addition, the lawsuit claims that Coinbase “improperly and unreasonably” stops consumers from accessing their accounts and funds, either for extended periods of time or permanently.