Suspended Account Holders Bring Class-Action Lawsuit against Coinbase

Coinbase, the crypto Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term that recently went public, is facing a class-action lawsuit in the United States which has been brought by users whose accounts were suspended by the exchange.

Filed by six plaintiffs at a California district court, the lawsuit alleges that the San Francisco-headquartered crypto exchange has wrongfully suspended their accounts for several months.

“Plaintiffs and Putative Class Members that Defendant locked out of their accounts or denied access to their funds were often unable to access their accounts for long periods of time, including but not limited to a span of a month or more,” the lawsuit stated.

Additionally, they alleged that their accounts were suspended after they made deposits to the exchange and could not even access their funds. One of the plaintiffs specified that he deposited $30,000 to purchase XRP, but later could not access his account as it was showing an error with invalid login details.

“Plaintiffs and Putative Class Members who were locked out of their accounts and/or deprived of access to their funds suffered a diminution in the value of their cryptocurrency upon eventually being granted access to such accounts,” the complaint added.

Moreover, the defendants pointed out the incompetence of the exchange’s customer support services and are seeking $5 million in compensation.

A Dent In Reputation

Coinbase is indeed the largest US Cryptocurrency Exchange Cryptocurrency Exchange A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) f A cryptocurrency exchange is an online platform that supports the exchange of various currencies for a cryptocurrency or digital asset.Comparable to a generalized financial exchange, a crypto exchange’s core function is to permit and encourage the buying and selling of cryptos.This is accomplished by producing a stable trading environment suitable for traders nested through different locations around the world. Sometimes a crypto exchange may be referred to as a digital currency exchange (DCE) f Read this Term. Despite its reputation, it is not a stranger to lawsuits. Last year, the company settled a legal complaint filed by the victims of the now-defunct crypto exchange, Cryptsy for around $1 million.

Though a Coinbase spokesperson said that the exchange is looking into the fresh allegations, it is to be seen in the coming days if the class-action lawsuit can stand in court or not.