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Coinbase Customers That Filed Lawsuit for Stolen Crypto Stalling Investigation: Report

Plaintiffs in a class action lawsuit against Coinbase who suffered losses as a result of unauthorised crypto asset transfers are reportedly stalling the case.

According to a new Bloomberg Law report, Coinbase customers who are suing the top US-based crypto exchange are refusing to release relevant account information, causing the proceedings to be delayed.

The plaintiffs have agreed to release the information, which includes emails, usernames, and Ethereum (ETH) addresses, in exchange for a court-ordered protective order, according to Bloomberg Law.

Coinbase, on the other hand, recently stated that it does not agree with the customers’ request to include a provision in the court order stating that the company will waive its right to arbitration, which is included in its terms of service as the standard method for resolving disputes with customers.

According to Coinbase, without the account information, it is unable to correctly match plaintiffs to their respective agreements and compel arbitration, effectively delaying the lawsuit.

“Refusal to provide this basic information is an improper attempt to undermine Coinbase’s right to compel arbitration under the Federal Arbitration Act,” Coinbase stated in an emergency motion filed in November.

George Kattula, a Coinbase customer, filed the class action lawsuit in August. In it, a group of customers claim that the crypto exchange’s security measures were inadequate and failed to prevent illegal transfers of their digital assets.

Kattula, who filed the lawsuit on behalf of the plaintiffs, claims that bad actors stole $6,000 in digital assets from Coinbase and transferred them to unknown wallets due to the platform’s inadequate security.

 

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