A class action complaint was filed last week against the American cryptocurrency exchange Coinbase on the grounds that it failed to adequately secure its customers’ accounts, making them open to unlawful conduct.
The lawsuit, which was submitted last Monday to the U.S. District Court for the Northern District of Georgia, claims that users suffered financial harm as a result of being locked out of their accounts either permanently or for an extended period of time.
The case, which represents a group of over 100 individuals, also accuses the company of breaking U.S. federal law by including securities on its trading platform.
Additionally, Coinbase allegedly delayed granting a client access to their account for more than six months on one occasion in 2019, which the lawsuit argues is representative of a larger pattern of conduct.
Additionally, the lawsuit asserts that some of the assets listed on the exchange met the criteria for security as defined by the U.S. Securities and Exchange Commission (SEC), and as a result, Coinbase had failed to file the necessary paperwork with the SEC to be registered as a securities exchange.
The SEC is presently looking into the Nasdaq-listed company’s token listing procedures, staking plans, and yield-generating goods.
A shareholder claimed Coinbase misled investors about the company’s public listing, and there is another lawsuit against the company that is currently pending against Coinbase. Coinbase also attempted to settle two other separate lawsuits through arbitration.
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