Cryptocurrency exchange Coinbase is facing another class action lawsuit from a group of over 100 clients, who claim that their wallets on the exchange were breached, and they suffered losses arising from the unauthorized transfer of crypto securities, which were listed without a registration.
Subscribe to our Telegram channel to get daily short digests about events that shape the crypto world
According to the court filing, Coinbase "does not properly employ standard practices to keep consumers’ accounts secure." The plaintiffs added that the US-based cryptocurrency exchange "improperly and unreasonably" bans consumers' accounts for extended periods of time or permanently.
"Making matters worse, Coinbase fails to timely respond to customer pleas for support and help, and also fails to preserve and safeguard customer assets as it promises."
The plaintiffs pointed out that Coinbase "boldly flouts" federal and state laws claiming it does not need a registration statement for crypto securities, which is why it does not have a broker dealer license.
This is not the first time when Coinbase faces similar accusations. Earlier in August, a law firm called Bragar Eagel & Squire also filed a class action lawsuit in New Jersey District Court against the exchange.
What's more is that Coinbase earlier acknowledged it had received inquiries from the US Securities and Exchange Commission (SEC) about the company's current and future operations, customer programs and products. According to reports, the SEC might be probing Coinbase over its services. However, no official accusation of wrongdoing have been made so far.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange