Learn what Coinbase lawsuits are out there, and how to take action…
Coinbase is a large financial service that allows people to trade, store, and purchase different types of currencies including a wide range of cryptocurrencies. With how large they are and how many customers they have all around the world, they find themselves at the center of many Coinbase lawsuits.
Here is what you should know about Coinbase lawsuits:
Firstly, you need to know whether lawsuits against coinbase are allowed. This is a complicated question. Yes, they are allowed in some situations, but no you probably can’t sue Coinbase as a customer in a traditional court.
Why not? Coinbase, like many companies, includes language in the user agreement you signed when you utilize their services which prohibits you from suing in a state or federal in most circumstances. Instead, your options for compensation when the company does something wrong are either suing in small claims court or using consumer arbitration.
We may be biased, but arbitration is often the better option, and it’s the one where we can help.
A class action lawsuit is a situation where hundreds or thousands of customers all have the same complaint so they are all represented by the same lawyers who sues the company for millions of dollars in most cases and then divides the settlement evenly for all of those affected people.
Unfortunately the language in your contract when you sign up to use Coinbase usually prohibits you from joining a class-action lawsuit and instead forces you to use alternative methods of seeking compensation like consumer arbitration.
We at FairShake are working hard to revolutionize the options for consumers who need compensation and justice. We can work with you to not only guide you through the arbitration process but create personalized legal documents on your behalf.
As a Coinbase customer, you can file a claim against Coinbase with the FCC or BBB, but for lawsuits, you have two options:
While the Coinbase lawsuits below give good information for any customers, the fine print of your user agreement likely says you cannot sue Coinbase but have to use consumer arbitration. With FairShake, you can get help starting the arbitration process and getting the compensation to which you are entitled.
Coinbase Lawsuits over Hacked Accounts
A man in Texas alleges that his account was hacked and the hacker used his account to purchase $50,000 in Ethereum cryptocurrency. One claim in this suit is that over 1,000 accounts have been similarly hacked.
Coinbase Lawsuits over Hacked and Frozen Accounts
In a similar lawsuit, customers claim that their hacked account resulted in losses of thousands of dollars and to make matters worse, when they tried to alert customer service, their account was frozen and they were unable to access what money remained. The suit alleges:
“Because of the extreme volatility of cryptocurrencies’ value – with freefalls of 40% within 24 hours not unheard of – the inability to access an account to sell, buy, or trade cryptocurrency leads to severe financial loss… Making matters worse, Coinbase fails to timely respond to customer pleas for support and help, and also fails to preserve and safeguard customer funds as it promises.”
Coinbase Lawsuits over No Access to Accounts and Missing Funds
This lawsuit echoes that above, with Coinbase users being locked out of their account randomly, with their funds deleted. The claims are that Coinbase prevented users from being able to access their accounts for no reason, which prevented them from trading or investing the funds in their account.
Many of those involved in the lawsuit claim to have sent over 100 emails to the company trying to get a customer service response but to no avail. What’s more, once they were able to gain access, many found their funds gone.
Coinbase Lawsuit over Cryptsy
In this lawsuit from 2020, Coinbase was taken to task over claims that they shared responsibility for the theft of cryptocurrency Cryptsy from user accounts. Coinbase has seen many similar lawsuits relating to cryptocurrencies but in this one, the plaintiffs claim that the founder of the company Paul Vernon stole Cryptsy from user accounts, closed it, and moved to China with that money thereafter refusing to give it back