A slew of recent legal disputes has impacted Coinbase, one of the biggest bitcoin exchanges in the world. In a recent incident, the corporation has been sued for “improperly and unjustly” shutting consumers out of their accounts, particularly in light of recent market volatility.
Plaintiff George Kattula also asserts in her lawsuit that the San Francisco-based business does not follow industry norms for account security. After experiencing the consequences of not having his account available via Coinbase, Kattula made the decision to file a lawsuit against the company.
“This is a class action brought by the plaintiff on behalf of all Coinbase wallet and account holders who have had their accounts compromised and suffered losses due to the unauthorized transfer of assets, including the unauthorized transfer of “crypto” securities listed on Coinbase’s platform without a registration statement, without Coinbase having registered as a broker or dealer, and without Coinbase having registered as a securities exchange,” the lawsuit filed with the court reads.
The complaint casts doubt on Coinbase’s claim to offer real-time and global access to the markets for digital assets.
Kattula claims that he lost money due to being prevented from trading after having his account locked out for an extended length of time.
Coinbase has not yet responded to the situation in a public forum.
The US Securities and Exchange Commission (SEC), which is investigating the cryptocurrency exchange, is looking into whether Coinbase advertised nine securities in the form of tokens.
Following the start of the SEC’s inquiry into the exchange, the price of Coinbase shares also fell sharply, by as much as 21%.
As part of its cost-cutting efforts in the face of recurrent industrial downturns, the corporation also laid off 18% of its workers in June.
As of the first three months of this year, Coinbase only brought in $1.17 billion (approximately Rs. 9,037 crores) in revenue, a 44 percent decline from the previous month’s figures.
- Related: According To A Survey, Even if The iPhone 14 Costs More, People Are Still Eager To Upgrade to The New Model!
- Related: Launch Of LG Ultra PC 14- And 16-Inch Laptops Powered By AMD Ryzen 5000 Series Processors!
- Related: An Event On September 7 Is Slated To Launch The iPhone 14 Series And Three iPad Tablets!