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

The plaintiffs behind a class action lawsuit against Coinbase who incurred losses from the unauthorized transfer of crypto assets are reportedly stalling the case.

According to a new report by Bloomberg Law, the Coinbase customers that are suing the top US-based crypto exchange are refusing to release relevant account information, delaying the proceedings.

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

However, Coinbase recently said it doesn’t agree with the customers’ request to include a provision in the court order that states the firm will waive its right to arbitration, which is included in its terms of service as the standard method for solving disputes that arise with customers.

Coinbase says that without the account information, it cannot correctly match plaintiffs to their respective agreements and compel arbitration, effectively postponing the lawsuit.

As stated by Coinbase in an emergency motion filed in November,

“Refusal to provide this basic information is an improper attempt to undermine Coinbase’s right to compel arbitration under the Federal Arbitration Act.”

The class action lawsuit was originally filed in August by Coinbase customer George Kattula. In it, a group of customers claim that the crypto exchange had inadequate security measures which failed to prevent illicit transfers of their digital assets.

Kattula, who filed the lawsuit on behalf of the plaintiffs, claims that bad actors siphoned $6,000 worth of his digital assets from Coinbase to unknown wallets due to the platform’s insufficient security.

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Featured Image: Shutterstock/Alberto Andrei Rosu

Source: https://dailyhodl.com/2023/01/02/coinbase-customers-that-filed-lawsuit-for-stolen-crypto-stalling-investigation-report/