Against Coinbase filed just two collective action

Against Coinbase filed just two collective action


According to Bitcoinist, against the American platform for digital assets, Coinbase On Friday, March 2, two collectives were filed for insider trading at Bitcoin Cash listing and a California state law violation of unclaimed property.

“[This claim is filed] on behalf of all Coinbase users who opened orders for purchase or sale between December 19th and 21st … who were financially damaged as a result of offenders by the defendant,” the claim says.

The plaintiff accuses the trading platform of “artificially inflating the price” of Bitcoin Cash through insider trading. It should be noted that against the background of the BCH listing at Coinbase, the rate of this cryptocurrency in just 48 hours soared by 130% – from $ 1,865 to $ 4,300.

Even Coinbase CEO Brian Armstrong then admitted that insider trading by one of the employees could take place, and promised to conduct a thorough internal investigation.

The second collective lawsuit accuses the company of violating California law and unfair business practices.

As stated in the document, Coinbase users can send Bitcoin, Ethereum, Litecoin and Bitcoin Cash to external email addresses that are not assigned to an existing wallet. This email contains a link that allows the recipient to open an account on Coinbase and claim a cryptocurrency transfer. However, as the plaintiff argues, not every transfer was claimed, so the question is where are these funds at the moment.

“Imagine that you wrote out a receipt for your friend to receive cash from your bank account. The bank has prepared these funds, but no one has claimed them. Should the bank keep them on demand? By law, the answer is no. But this is exactly what Coinbase does with unclaimed cryptocurrency transfers,” the plaintiff emphasizes.

According to him, Coinbase does not notify the senders that the funds were not in demand, and uses them [funds] for illegal enrichment.

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