Coinbase Claim for Compensation

Coinbase Claim for Compensation

What Coinbase did:
I am seeking representation for a potential case against Coinbase.com.

I established an account with Coinbase in late 2017. Since, I have accumulated 57 Ethereum which I staked with Coinbase in an ETH2 account. Since staking my 57 Ethereum with Coinbase I have earned over 2 ETH as a staking reward.

After staking my Ethereum, I became aware of threats from malicious actors who have gained unauthorized access to Coinbase accounts as well as the vulnerabilities associated with online cryptocurrency accounts. I moved most of my crypto assets into cold storage, but according to Coinbase rules for staking Ethereum, Ethereum locked in the Coinbase staking contract cannot be moved, traded or sold until some time in the future when the Ethereum protocol unlocks staked Ethereum. Even if I could move my staked Ethereum into cold storage, I consider the risk to my Ethereum assets to be lowered by the staking rule prohibiting movement of staked Ethereum.

On September 03, 2022, my Coinbase account was subject to unauthorized access. At the time my Ethereum assets were worth approximately $100,000.00. As a result of the unauthorized access by a malicious imposter, I am not able to access my own account as the imposter changed the login information. When I was able to open a new account with a different email address, Coinbase agreed to transfer my assets but my 59 ETH2 were not transferred.

Coinbase remains in custody of my 59 staked Ethereum. At this time, after multiple daily emails to their customer support system, Coinbase does not acknowledge me as the rightful owner of my 59 Ethereum in Coinbase custody.

Coinbase stated in email replies to my issue that transactions on the blockchain cannot be reversed. If staked Ethereum cannot be traded, sold or withdrawn, as is the Coinbase rules, a transaction impacting my 59 staked Ethereum should not have occured.

Since the time I staked my Ethereum in the Coinbase ETH2 contract, Coinbase created a cryptocurrency token called CBETH. Coinbase states a person can wrap their staked ETH2 in CBETH and move the CBETH off of the Coinbase platform. I considered the risk to my staked Ethereum to be impacted by this new CBETH cryptocurrency, but I was not able to address this risk by moving my staked Ethereum off the Coinbase platform had I wished to ensure it was ultimately safe in cold storage. I did not have any say as to whether I supported the Coinbase decision to create CBETH and was not provided an opportunity to voice my concerns related to how my staked Ethereum might be impacted if my account suffered unauthorized access.

I have no knowledge of what occured within my account after the unauthorized access because Coinbase will now provide me access to the account or the account transaction history.

Ultimately, regardless of what transactions an imposter performed impacting my Coinbase account, Coinbase remains in custody of my 59 staked Ethereum since it cannot, at this time, be traded, sold or withdrawn. Coinbase will not acknowledge that I am the rightful owner of my 59 staked Ethereum.

I’m sure you can empathize with a person having to endure significant mental and emotional anguish having had my Coinbase account with a significant sum of Ethereum breached and the indifference with which Coinbase appears to be treating my issue of tremendous importance to me or any other person in my position.

I have submitted my case to law enforcement and have filed an official complaint with Coinbase. At this time, given my interaction with the Coinbase email customer support system, I am losing confidence that Coinbase will do the right and just thing to investigate the matter, identify me as the owner of 59 staked Ethereum and return the Ethereum to me. As such, if Coinbase does not act soon, I will be pursuing legal recourse.

Return the 59 Ethereum Coinbase has in its custody and locked in the Coinbase staked Ethereum contract.

Submitted by: Anonymous Coinbase customer in Crescent City | Read more Coinbase complaints

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