Coinbase is facing a class-action lawsuit by six cryptocurrency owners who claim that the company has locked them out of their accounts for several months without a legal reason to do so.
The group is suing the crypto exchange for $5m in damages and is also inviting other Coinbase users to join the legal action.
Plaintiff Joseph Treseder of Oklahoma claimed he deposited $30,000 in December 2020 to buy XRP, but received a message informing him that his login credentials were not valid.
Treseder said he deposited the funds a month before actually attempting the purchase. When he did come back to carry out the transaction, he found out that he was locked out of his account. He said It took Coinbase months to restore access.
To join the class action, a Coinbase user must have had their account registered in the past four years and been a “victim” of unjustified lockout for a prolonged period of time.
The complaint was filed in a San Francisco federal court. The plaintiffs argued that Coinbase had stopped them from depositing, withdrawing and even investing in crypto, leading to losses.
The complaint goes even further and stipulates that “Coinbase engaged in a scheme”, predicated on “arbitrary reasons and arbitrary amounts of time”.
A Coinbase spokesperson said: “We take all customer concerns seriously. We are aware of the complaint and are reviewing the allegations, but we have no further comment at this time.”
Coinbase is likely the world’s most legitimate crypto exchange. As such, it’s subject to strict regulation and customer protection standards. While unfortunate, prolonged lockdowns do happen even with traditional payment systems such as PayPal.
However, the plaintiffs stipulate that Coinbase was earning interest on their funds while the accounts were frozen.
If you want to stay away from legal proceedings yourself, it’s best to take your crypto casually. There are many crypto casinos today where you can do just that. Visit 1xBit, FortuneJack or Bitcasino.io.