A resident of Georgia (USA), George Kattula filed a class-action lawsuit against cryptocurrency exchange Coinbase. He accused the platform of unfair protection of assets, freezing funds and blocking customer accounts.
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“Contrary to its statements, Coinbase does not properly employ standard methods to secure user accounts. And Coinbase blocks customers’ access to their accounts and funds either for extended periods or permanently,” the complaint states.
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Kattula noted that the platform did not delay the processing and execution of a suspicious transaction. He also accused the exchange’s support service of failing to respond promptly to inquiries.
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“Moreover, Coinbase does not disclose that the crypto assets on its platform are securities,” the plaintiff added.
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In August, two class-action lawsuits were filed against Coinbase. The platform was accused of offering cryptocurrency assets that should have been registered as securities.
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Earlier in July, investigation SEC into Coinbase was reported.
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Earlier, the U.S. Department of Justice announced the arrest of former Coinbase product manager Ishan Wahi and two of his associates. They were charged with insider-trading securities fraud.
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The SEC filed a securities-fraud complaint against the suspects with similar allegations and noted that the case concerns fraud involving securities. In doing so, the agency classified nine of the 25 cryptocurrencies that the defendants allegedly used in their operations.
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