Coinbase faces class action lawsuits for insider trading and stealing cryptocurrency from...

William Gayde

Posts: 380   +5
Staff member

Cryptocurrency exchange Coinbase has been hit with two class action lawsuits in recent days, one for insider trading and another for allegedly stealing customers' coins. This comes at a difficult time for Coinbase as they continue to face system stability issues and reports of overcharging.

The first lawsuit was filed in San Francisco federal court and surrounds the launch of Bitcoin Cash, BCH, on the Coinbase platform. Shortly after trading opened, the price of BCH skyrocketed to massively inflated levels. When rumors emerged that Coinbase employees were tipped off about the launch, suspicions of insider trading immediately began to spread. Jeffrey Berk is representing all customers that placed buy, sell or trade orders for BCH between December 19 and December 21, 2017. The complaint alleges:

“When Coinbase’s customers’ trades were finally executed, it was only after the insiders had driven up the price of BCH, and thus the remaining Bitcoin customers only received their BCH at artificially inflated prices that had been manipulated well beyond the fair market value of BCH at that time.”

Company CEO Brian Armstrong quickly announced an internal investigation but has yet to provide details of its results.

The second lawsuit was also filed in San Francisco and claims that Coinbase failed to notify customers of unclaimed balances back in 2013. The plaintiffs argue that rather than turning these coins over to authorities, Coinbase kept them. The complaint states:

“Defendant kept, and continues to keep, unredeemed cryptocurrencies sent via email through Coinbase.com.”

This was caused by Coinbase's operating procedure surrounding sending coins to non-members in certain scenarios. The two men filing the suit allege they received reminders of an unclaimed Bitcoin balance but were unable to claim the coins since the email link had expired.

Permalink to story.

 

VitalyT

Posts: 5,498   +5,102
Coin base is just a means to turn cash into crypto then move it to an exchange

It is supposed to reverse it, and let you get the cash back into your account, is where they notoriously fail.

And they do monstrous overcharge on everything. They are thieves.
 

yRaz

Posts: 3,607   +3,527
It is supposed to reverse it, and let you get the cash back into your account, is where they notoriously fail.

And they do monstrous overcharge on everything. They are thieves.
I've gone both ways on coinbase and never had a problem. They always over deliver even if their fees are high but they are upfront about their fees. It's not like they hide the from you. Whenever ever you go to sell they tell you the current market value of what your selling, what they're taking and what you will receive in your account.

They aren't theives if you agree to what they're taking.....
 

VitalyT

Posts: 5,498   +5,102
I've gone both ways on coinbase and never had a problem. They always over deliver even if their fees are high but they are upfront about their fees. It's not like they hide the from you. Whenever ever you go to sell they tell you the current market value of what your selling, what they're taking and what you will receive in your account.

They aren't theives if you agree to what they're taking.....

They always sell you BTC at the price way higher than the currently trading price, and buy for way less then the current price. That's what I see whenever I use them. On top of that, 1.5% to sell + 1.5% to buy is outrageous. So if you want to park your BTC account for some time, it will automatically cost you 3% + the difference from the real price, which is around 1%, so 5% loss just to park your BTC account. They are thieves!
 
Coinbase locked my account with thousands of dollars of bitcoin in it. They are holding my money hostage!

And I have seen many others say the same thing happened to them, also. Supposedly, you can get back into your account if you just jump through some hoops. But I have now done so (provided all documents, and taken extra pictures for verification) literally about 18 times now, and still they won't let me into my own account! Months have gone by now. And still nothing but excuses from Coinbase.

I am really thinking at this point they would probably just rather keep my money for themselves and expect they can get away with it. Since a lot of people don't mind this kind of thing at all if it isn't happening to them. Or even defend it, as long as it's not happening to them! I don't doubt there are many who have NOT been treated poorly/ripped off by Coinbase. But just because you were lucky enough to get by unscathed doesn't mean everyone was.

I really, really want to see them properly investigated on ALL FRONTS. I suspect Coinbase just may turn out to be the Enron/Worldcom of the crypto world.
 

frostyshield

Posts: 87   +89
The problem I have with coinbase is you can deposit funds but you cant withdraw it. Its 2018 not 1844 why its so hard to withdraw is beyond me. cant even withdraw to paypal
 

yRaz

Posts: 3,607   +3,527
The problem I have with coinbase is you can deposit funds but you cant withdraw it. Its 2018 not 1844 why its so hard to withdraw is beyond me. cant even withdraw to paypal
I've delt in the tens of thousands with coin base just in the last few months, I have NEVER had a problem I do 2-3 deposits AND withdrawls a week through them
 

frostyshield

Posts: 87   +89
I tried to withdraw and atm theres no options... Its like a damn maze, if your US then yes I see how it'll be easy but im british its not so easy its like trying to get blood from a stone