Plaintiff in Coinbase lawsuit raises issues of account lockouts, crypto as a security
2022.08.24 00:45
Plaintiff in Coinbase lawsuit raises issues of account lockouts, crypto as a security
One user has filed a class-action lawsuit against crypto exchange Coinbase (NASDAQ:COIN) on behalf of account and wallet holders “who have had their accounts breached and incurred losses arising from the unauthorized transfer of assets.”
In an Aug. 15 filing in the U.S. district court for the Northern District of Georgia, plaintiff George Kattula requested a jury trial against Coinbase, claiming the crypto exchange did not employ practices aimed at keeping users’ accounts secure and had “improperly and unreasonably” locked clients out of their accounts during periods of peak volatility in the crypto market. In addition, Kattula alleged that Coinbase should be registered as a broker or dealer in the United States as the platform handles the transfer of securities — in this case, cryptocurrencies.
