The world’s biggest crypto exchange, Coinbase, is currently facing a Federal Class Action lawsuit over claims that it failed to secure user accounts from thieves and hackers.
This complaint was filed by commercial trial attorneys at BraunHagey & Borden LLP. It states that Coinbase misrepresents itself as having never been hacked and that its digital wallets are fully secure. The plaintiffs insist that Coinbase’s account security network is vulnerable to various attacks and that the platform has repeatedly failed to prevent several breaches that have resulted in considerable user losses.
The latest breaches happened barely a year after Coinbase settled similar allegations by the California Attorney General and paid around $300 million.
Notably, the suit alleges that the firm was indifferent to clients’ losses. When the victims sought assistance from Coinbase, it:
“Routed them through its automated complaint processing — a recursive loop of impenetrable screens that prevented them from explaining their situation to any human being and was incapable of redressing the theft of their savings.”
The suit aims to seek restitution, injunctive relief, and civil and punitive damages, among other remedies. Trial attorney Matt Borden said:
“Coinbase plays a valuable and important role as a financial institution with billions of dollars in custodial funds. It needs to take that role seriously as an industry-leading platform used by ordinary consumers.”