• Coinbase customers have refused to share account information in a lawsuit against the crypto exchange.
• The plaintiffs are seeking at least $5 million in damages and have agreed to provide the necessary information in exchange for a protective order.
• The plaintiffs allege that $6,000 worth of cryptocurrency was drained from their wallet to an address they had never interacted with before, facilitated by Coinbase.
Coinbase, one of the world’s leading cryptocurrency exchanges, is facing a lawsuit by customers alleging that the platform failed to protect their crypto assets. The plaintiffs, who have refused to share their account information, are seeking at least $5 million in damages.
The lawsuit involves a group of customers, who accuse Coinbase of allowing unauthorized transfers of their cryptocurrency from their wallets to an address they had never interacted with before. The plaintiffs allege that $6,000 worth of cryptocurrency was drained from their wallet, facilitated by Coinbase.
The plaintiffs have agreed to provide Coinbase with the necessary information, such as emails, usernames, and Ethereum addresses, in exchange for a protective order. This means that the account information would only be used in the arbitration process and would not be made public.
Coinbase has argued that the case should be moved to arbitration, as the customers agreed to the company’s terms of service and user agreement. However, the plaintiffs are refusing to provide their account information, as they are concerned that it could be used against them in arbitration.
The legal battle between Coinbase and its customers has been ongoing since late 2019. Despite the fact that the plaintiffs have refused to provide their account information, Coinbase is pushing for the case to be moved to arbitration.
The outcome of the case could have a major impact on the way cryptocurrency exchanges protect customer assets. If Coinbase is found liable for the unauthorized transfers, it could force other exchanges to take more steps to protect their customers’ crypto assets.
It remains to be seen whether the case will be moved to arbitration or if the plaintiffs will continue to hold back their account information. If the case is resolved in the plaintiffs’ favor, it could set a significant precedent that would protect cryptocurrency users from similar issues in the future.