Coinbase wants to settle the class action lawsuit raised against it by the users of the old cryptocurrency exchange Cryptsy. Coindesk, have recently acquired the document showing the offer. One document is dated November 27th, and one December 10th, both from the back end of 2019. In the documents, Coinbase has agreed to hand over the 970,000 dollars to the agent in charge of the class action and the escrow. He was the one who helped the users from Cryptsy, win 11,500 bitcoins in another case. (If you think you might have the right to compensation, make sure you click this link for a class action lawsuit lawyer).
Coinbase has been the most trusted way for the masses to purchase cryptocurrency since it began. The platform has grown since its early days. It now offers an easy way to buy the virtual currency known as cryptocurrency and store it safely in an online wallet. In the past, online wallets were very vulnerable, but Coinbase has managed to improve safety levels massively. This is due to their implementation of two-factor authentication. Now they operate in over 24 countries. Their crypto stock market is one of the most used in the world, mainly thanks to the ease of use. Users never have to leave the application to trade, buy, sell, exchange, or withdraw.
The reason for the class action against Cryptsy was due to the claims that the owner of the site Paul Vernon, stole a huge amount of cryptocurrency from his users and laundered it through Coinbase. Over 12,000 bitcoin and 300,000 litecoin were stolen, Paul Vernon and his staff, all claim it was part of a massive hacking operation.
His customers did not believe him, however, and this was when the class action lawsuit was filed against him. The main probe of the class action is the claim that Paul Vernon was negligent and violated one of Florida’s trade acts. Shortly after, they also filed complaints and began to build evidence against Coinbase for allegedly stealing over $8 million dollars of crypto.
The firms that took on the class actions were Silver Miller and Wites Law. Their attorneys had the near-impossible task of resolving the difficult case against the two cryptocurrency giants. They were the only two lawyers in the country who had ever pursued a case against the two entities, and after a lot of hard work, they managed to secure meaningful recoveries for some of the people who had been left devastated by the hacking/thefts.
After the settlement, the Silver Miler Law firm spoke highly of the way that Coinbase had behaved during the proceedings. Cryptocurrency is a massively unregulated world, and its history is shrouded in stories of thefts, exit scams and massive fraud. To fight a case in this space, and win, against two of the biggest companies who walk the thin line between legal and non-legal, is a massive victory. It is the first of its kind. However, we can guarantee it won’t be the last.