Leone, et al., v Coinbase, Inc. Lawsuit
Coinbase is known as an online platform where people can buy, sell, transfer and store digital currency. It was launched in 2012 and is now one of the biggest cryptocurrency trading platforms in the country.
But, Coinbase has been locking users randomly from their accounts for a long time now, which means losing funds. There were even accounts that the company erased from their platforms.
Details about the Lawsuit
Michael Leone, Joseph Treseder, Travis Reece, David Beavers, Fazal Us Saboor Ali, and Keisha Pinkey filed the class action lawsuit in California. The group claims they were locked out of their individual accounts for no reason, which meant they could not trade, invest or sell the funds they have in their accounts. Some even don’t have their accounts anymore as they were wiped from the system entirely.
People using the platform were given the opportunity to store their available cryptocurrencies in a digital version of a wallet, and it is what they use in buying, selling, spending, and trading on the platform.
The lawsuit also alleges that the company says they are building the crypto-economy, where people can have a better, fairer, more accessible, and efficient crypto-enabled financial system. It also mentioned that they are regulated, entirely compliant with regulations, and registered with the US Department of Treasury’s Financial Crimes Enforcement Network as a Money Services Business.
The crypto traders say that the company actually stops its users from getting into their accounts or even accessing their funds for unknown reasons. It took long before they could invest, spend, save, earn, use or withdraw the funds in their wallets.
This devalued the cryptocurrencies in their accounts, according to the lawsuit.
Michael Leone had $15,000 in his Coinbase wallet, but he couldn’t access it since January, and he didn’t know nor get any reason despite sending in over 100 emails to the company, according to allegations.
Joseph Treseder experienced the same, and he had $30,000 in his own account. He couldn’t get into his account since January and never regained access even though he tried so many times.
In Reece’s experience, he made a deposit to his Coinbase wallet. After doing so, he realized that the deposit disappeared according to the lawsuit.
Beavers got locked out of Coinbase after disputing a $100 fee he received on his account. According to allegations, it took time to get access to his account to no avail.
Ali and Pinkey lost their own access to their accounts in January and February, respectively, and the same as the other plaintiffs never got their access back.
Coinbase remotely operates a cryptocurrency exchange platform. It was founded on June 20, 2012, by Brian Armstrong and Fred Ehrsam. They aim to have an open financial system and be the leading brand to help anyone change digital currency to their local currency. People can buy, sell, transfer and store cryptocurrencies on the Coinbase platform, and
Editor’s Note on Coinbase Locking Accounts Class Action Lawsuit:
This piece is written about the class action lawsuit filed against Coinbase . The plaintiffs allege Coinbase of illegally banning and stopping them to use their accounts. If you are considered eligible to be among the class of consumers described in the class action lawsuit, you may eventually take part in receiving any compensation the court may award.
Case name: Coinbase Locking Accounts Class Action Lawsuit
Leone, et al., v Coinbase, Inc. et al.
Case No.: 3:21-cv-04286; June 4, 2021
Product/Service: Users Accounts
Allegations: Coinbase’s users were locked out of their accounts for no reason, and accounts were wiped away from the server completely.
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