Following one of the most publicised IPOs (Initial Public Offering) in 2021, Crypto exchange – Coinbase – now finds itself on the receiving end of a class action lawsuit brought forward by a group of displeased account holders.
The six plaintiffs who seek $5 million in damages alleged to have had their accounts wrongfully suspended by the exchange for extended periods of time.
“Plaintiffs and Putative Class Members that Defendant locked out of their accounts or denied access to their funds were often unable to access their accounts for long periods of time, including but not limited to a span of a month or more,” reads part of the California District Court filed lawsuit against the San Francisco based digital assets exchange.
The plaintiff’s biggest issue with being locked out of their accounts is the loss of value of their crypto currency holding while they were unable to access them – also pointing out the general “incompetence” of the exchange’s customer support staff.
“Plaintiffs and Putative Class Members who were locked out of their accounts and/or deprived of access to their funds suffered a diminution in the value of their cryptocurrency upon eventually being granted access to such accounts, ” reads the document.
Definitely Not A First
Coinbase is by no means the first crypto currency exchange to find itself in the middle of potentially damaging legal proceedings. Recently, New York based digital assets exchange – Coinseed – opted to shut down after landing on the wrong side of US regulator’s newfound interest in cryptocurrency.
Furthermore, this is not the first time that Coinbase has to defend itself from legal action. Last year, Coinbase agreed to a $1 million settlement in a case that involved the now defunct Crypty digital assets exchange.