A class action lawsuit was filed on March 2 against California’s popular cryptocurrency exchange Coinbase. The prosecution accuses Coinbase of violating California’s Unclaimed Property Act and engaging in illegal and unfair business practices.
LOST & UNFOUND
Allegations against Coinbase come from the exchange allowing its users to send Bitcoin, Ethereum, Litecoin and Bitcoin Cash to outside email addresses – rather than cryptocurrency wallets. The emails would include a link allowing the recipient to create a Coinbase account and request their cryptocurrency. However, not all transactions were redeemed and questions were asked about what happened to these unclaimed funds.
Imagine writing a cashier’s check to a friend. The bank withdraws funds from your account, but your friend never cashes the check. Does the bank get to keep the funds? The law clearly says no. But this is exactly what has happened with Cryptocurrencies sent through Coinbase.com…
The plaintiffs claim that Coinbase chose to hold the unclaimed cryptocurrencies, instead of advising the senders that the funds were never collected – which is considered a violation of the California State Unclaimed Property Act.
That explains the ranking:
Accordingly, this class action seeks to recover these unclaimed Cryptocurrencies and deliver them to the intended recipients, as well as all “forks” thereof (e.g. Bitcoin Cash fork of Bitcoin), and “airdrops” related thereto (e.g., ERC20 […] airdrops of Ethereum related tokens).
Funds that cannot be returned to recipients because of outdated email addresses are requested to be sent to the State of California in order to “avoid unjustified enrichment of[Coinbase].
New evidence points to possible insider trading in Coinbase
MORE MONEY, MORE TROUBLE
Coinbase has had a lot of problems lately.
In parallel to a class action lawsuit concerning violations of California Unclaimed Property Law, a class action lawsuit was filed against the exchange for alleged insider trading.
Recently, the exchange has also been forced to deal with the gross duplication of orders placed by users, which has had the effect of emptying users’ bank accounts without authorization. However, VISA has come to accept responsibility for the wrongdoing, although Coinbase’s reputation as a secure exchange for investing in cryptocurrencies has undoubtedly been tainted.
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