Coinbase customers refuse to pass on account information in legal proceedings

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Von Krypto News Österreich

Coinbase customers who had previously sued the crypto exchange due to non-authorized crypto transfers have kept their account information back in order to block efforts to bring their case before an arbitration.

A new urgent application, which was submitted to the Federal Supreme Court, showed that the plaintiffs agreed to provide the necessary information, including email addresses, user names and Ethereum addresses, in exchange for a protective arrangement.

  • according to the acts submitted to the US district court for the northern district of Georgia, the plaintiff claimed that cryptocurrency worth $ 6,000 was deducted from his wallet to an address with which he had never interacted before, with Coinbase making the violation of his account easier. The file also showed that the hackers had managed to withdraw $ 1,000 from his bank account.
  • The crypto exchange based in San Francisco claimed, however, that the users had not agreed to include a provision in the protective arrangement, which states that Coinbase did not give up its right to arbitrate the dispute.
  • In view of the lack of account information The user claimed coinbase that it was unable to compensate for plaintiffs with their respective arbitration agreements.
  • In his emergency application last month, the company explained:

"The refusal to provide this basic information is an inadmissible attempt to undermine Coinbase's right to force an arbitration procedure according to the Federal Arbitration Act."

  • In August, a group of crypto investors submitted a lawsuit against Coinbase in which they claimed to have lax security systems that made user accounts accessible.
  • Under the leadership of Georgia-living George Kattula, over 100 coin base users sued the trading platform because they arbitrarily denied them to access their accounts and funds and thereby prevented them from unloading their low-performance tokens. This supposedly led to financial losses, according to the file.
  • of non-licensed sales from crypto-assets to "much false and misleading statements" and more-Coinbase was faced with several lawsuits last year.

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