New class action lawsuit filed in US against Coinbase

New class action lawsuit filed in US against Coinbase

Applied to the US new class action lawsuit against Coinbase

Georgia (USA) resident George Cattula has filed a class action lawsuit against the Coinbase cryptocurrency exchange. He accused the platform of unfair asset protection, freezing funds and blocking customer accounts.

According to the plaintiff, in April he received an email purporting to be from Coinbase asking him to change his account password. After that, nearly $6,000 worth of assets disappeared from the account.

“Contrary to its claims, Coinbase does not properly use standard methods to secure user accounts. And Coinbase is improperly and unreasonably blocking customers from accessing their accounts and funds, either for an extended period of time or permanently,” the lawsuit alleges.

Kattula noted that the platform did not delay processing and execution suspicious transaction. He also accused the exchange's support team of not responding to inquiries in a timely manner.

“Moreover, Coinbase does not disclose that the crypto assets on its platform are securities,” the plaintiff added.

Two class-action lawsuits were filed against Coinbase in August. The platform was accused of offering cryptocurrency assets that were supposed to be registered as securities.

What is Coinbase?

Recall that in July, the alleged SEC investigation into Coinbase became known. The reason allegedly was the possible provision of US residents with access to trading in digital assets that can be regarded as securities.

Earlier, the US Department of Justice announced the arrest of Ishan Wahi, a former product manager of the exchange, and two of his accomplices. They were accused of fraud using insider trading.

The SEC filed a lawsuit against the suspects with similar theses and emphasized that it was securities fraud. This is how the agency classified 9 of the 25 cryptocurrencies that the defendants allegedly used in their operations.

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