A group of Coinbase users filed a complaint with the SEC in May 2018, claiming that the company’s listing practices are creating an unfair advantage for insiders. The SEC has yet to respond to the complaint, but many believe this will be the first of many lawsuits against cryptocurrency exchanges.
Six Coinbase users filed a complaint against the company for not disclosing that their cryptocurrency transactions would be taxed.
- Coinbase has been sued by a group of cryptocurrency users.
- The accounts of Coinbase users have been locked.
- The organization is seeking a payment of $5 million in damages.
Six Coinbase customers claim the firm has frozen their accounts for months without giving them a reason. In addition, the organization has asked for $5 million in damages.
The organization is suing Coinbase on behalf of itself and other Coinbase customers who established accounts over the past four years and are now unable to utilize them.
One of the six coinbase users, Joseph Treseder, claims in a lawsuit filed in Federal court in San Francisco on Friday that he deposited $30,000 in December. He intended to buy XRP, but an error notice informed him that his login credentials were incorrect.
Furthermore, the lawsuit claims that customers were unable to trade or withdraw money as a consequence of their accounts being frozen. When the price fell, this problem resulted in a financial loss.
A Coinbase representative responded to the allegation, saying:
“We take all consumer complaints very seriously. We are aware of the complaint and are looking into the claims; but, at this time, we have no additional comment.”
At this time, the complaints are just allegations, and it’s unclear if all of them are genuine or whether any of the individuals did anything to warrant Coinbase’s account suspension. The lawsuit, however, is likely to focus even more attention on Coinbase’s customer service methods, which have long irritated many customers.
CoinBase has been accused by users.
Michael Leone, a user from California, claims to have sent 100 emails to the Defendant’s customer support email address. However, he has received no answer on this problem to date.
Carelessness, violation of fiduciary responsibility, breach of contract, and wrongful termination are among the legal allegations made by Coinbase customers. The second half is reportedly predicated on Coinbase collecting interest on their money while their accounts were blocked. If they win, the users have requested $5 million. Furthermore, this does not certain that a judge will agree.
This isn’t the first time a class-action lawsuit has been brought against Coinbase. The firm has previously been criticized for how it handled the Bitcoin Cash split and its decision to withdraw XRP. Neither of them were a success.
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The bitcoin on the moon is a complaint filed by six Coinbase users against the company. The lawsuit claims that Coinbase has violated securities laws and has misled its customers.
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