Coinbase is in hot water after close to 100 customers have filed lawsuits against the western hemisphere’s largest digital currency trading platform.
These customers are accusing Coinbase of turning a blind eye to a scam that ultimately cost them more than $21 million in digital currency funds. The problem stems from the Coinbase Wallet, which last fall, directed users upon being downloaded to fraudulent or phony websites that allowed scammers and hackers to take control of their accounts and move their digital assets into wallets they owned.
At press time, due to the terms and conditions enforced by Coinbase, none of the lawsuits in question have resulted in defendants or plaintiffs going to court. Rather, everything is being handled through an arbitration process. This ensures the details stay out of the media and that suits occur through private means between the company and those affected. The legal disputes are heard by a neutral decision maker who then decides which party deserves a ruling in their favor.
In the arbitration demand, the customers allege Coinbase knew full well what was going on with its wallet app and that executives did nothing to handle it or bring the damage to a minimum. They took several attempts to warn Coinbase heads about what was going on, yet little was done to acknowledge their concerns or the money they had lost. Now, these individuals are taking stronger means of getting their money back and delivering justice to themselves.
All Comments