Coinbase faces class activity lawsuits for insider trading and stealing cryptocurrency from customers
Class act lawsuit surrounds launch of Bitcoin Specie on the Coinbase verhoging
Cryptocurrency exchange Coinbase has bot succesnummer with two class act lawsuits te latest days, one for insider trading and another for allegedly stealing customers’ coins. This comes at a difficult time for Coinbase spil they proceed to face system stability issues and reports of overcharging.
The very first lawsuit wasgoed filed te San Francisco federal court and surrounds the launch of Bitcoin Specie, BCH, on the Coinbase podium. 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 instantly began to spread. Jeffrey Berk is indicating all customers that placed buy, sell or trade orders for BCH inbetween December Nineteen and December 21, . The complaint alleges:
“When Coinbase’s customers’ trades were eventually executed, it wasgoed 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 bot 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 2nd lawsuit wasgoed also filed ter San Francisco and claims that Coinbase failed to notify customers of unclaimed balances back ter 2013. The plaintiffs argue that rather than turning thesis coins overheen to authorities, Coinbase kept them. The complaint states:
“Defendant kept, and proceeds to keep, unredeemed cryptocurrencies sent via email through Coinbase.com.”
This wasgoed caused by Coinbase’s operating proces surrounding sending coins to non-members te certain scripts. The two dudes filing the suit allege they received reminders of an unclaimed Bitcoin vaivén but were incapable to optie the coins since the email verbinding had expired.