Coinbase users stall crypto theft investigation

Users subjected to a hack have halted investigations with Coinbase over a court provision order.

Coinbase users who sued the firm in October 2022 for unauthorized crypto transfers have reportedly stalled the investigation.

Users were targeted by cyber scammers on the popular social media platforms and instant messenger services WhatsApp, Twitter and Facebook.

The attackers then used malicious smart contracts to help access and steal user funds.

In a December 2022 motion, Coinbase told the court of a disagreement between the firm and its users on “whether to include a provision in the protective order”.

Coinbase has recently denied the users’ request to add a provision in the court order.

The provision details that the organization will waive its right to arbitration, which was in the company’s terms of service.

“Refusal to provide this basic information is an improper attempt to undermine Coinbase's right to compel arbitration under the Federal Arbitration Act”, said Coinbase in an emergency motion on November 18.

More than 100 Coinbase users worldwide voiced their dissatisfaction with the crypto exchange for not taking the appropriate steps to protect them.

According to a recently filed arbitration demand: “Coinbase took no remedial steps to fix the security flaw or even warn customers about this major problem, despite warning customers about other security risks.”

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Written by Isabella Aslam


Isabella is an experienced writer in B2B and B2C journalism. Alongside crypto, Isabella writes and discusses the topics of relationships and psychology. Isabella holds a first-class degree in music journalism and often interviews electronic artists and DJs.

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