Plaintiff in Coinbase lawsuit raises account lockout issues, crypto as security
Coinbase user claims crypto exchange is "boldly flouting federal and state laws" by not completing proper registration as a stock exchange in the United States.
New
A user has filed a class action lawsuit against crypto exchange Coinbase on behalf of account and wallet holders “who had their accounts hacked and suffered losses resulting from the unauthorized transfer of assets.”
In an August 15 filing with the U.S. District Court for the Northern District of Georgia, plaintiff George Kattula requested a jury trial against Coinbase, claiming the crypto exchange did not employ practices aimed at to secure users' accounts and had "incorrectly and unreasonably" excluded customers from their accounts during times of peak volatility in the crypto market. Additionally, Kattula alleged that Coinbase should be registered as a broker or trader in United States because the platform manages the transfer of securities - in this case, cryptocurrencies.
"Coinbase does not disclose that crypto assets on its platform are securities," the lawsuit said. “Indeed, Coinbase boldly flouts federal and state laws by proclaiming that it does not require a registration statement for these securities and by refusing to register as a stock exchange or broker-dealer. ."
The added folder:
"Crypto-assets resemble traditional securities because they represent an investment in a project to be undertaken with the funds raised through the sale of crypto (whether it is a "token", of a "stablecoin" or cryptocurrency).Investors buy crypto with the expectation that the value of the crypto will appreciate as the issuer creates use that will give the crypto value ."
Coinbase has repeatedly gone offline during periods of extreme crypto market volatility, prompting some users to take legal action. In March 2022, a class action lawsuit filed in court for the Southern District of New York also claimed that the crypto exchange was...
Coinbase user claims crypto exchange is "boldly flouting federal and state laws" by not completing proper registration as a stock exchange in the United States.
New
A user has filed a class action lawsuit against crypto exchange Coinbase on behalf of account and wallet holders “who had their accounts hacked and suffered losses resulting from the unauthorized transfer of assets.”
In an August 15 filing with the U.S. District Court for the Northern District of Georgia, plaintiff George Kattula requested a jury trial against Coinbase, claiming the crypto exchange did not employ practices aimed at to secure users' accounts and had "incorrectly and unreasonably" excluded customers from their accounts during times of peak volatility in the crypto market. Additionally, Kattula alleged that Coinbase should be registered as a broker or trader in United States because the platform manages the transfer of securities - in this case, cryptocurrencies.
"Coinbase does not disclose that crypto assets on its platform are securities," the lawsuit said. “Indeed, Coinbase boldly flouts federal and state laws by proclaiming that it does not require a registration statement for these securities and by refusing to register as a stock exchange or broker-dealer. ."
The added folder:
"Crypto-assets resemble traditional securities because they represent an investment in a project to be undertaken with the funds raised through the sale of crypto (whether it is a "token", of a "stablecoin" or cryptocurrency).Investors buy crypto with the expectation that the value of the crypto will appreciate as the issuer creates use that will give the crypto value ."
Coinbase has repeatedly gone offline during periods of extreme crypto market volatility, prompting some users to take legal action. In March 2022, a class action lawsuit filed in court for the Southern District of New York also claimed that the crypto exchange was...
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