Coinbase Facing Another Class Action Lawsuit
Many cryptocurrency related firms have recently been tied up in court. Coinbase has been facing multiple lawsuits since the
SEC investigation regarding whether Coinbase is offering assets that should be classified as securities. The most previous lawsuit alleges that the
company's investors lost significant capital due to the SEC Both also claim that Coinbase either "knowingly or recklessly disregarded" that they were
facilitating securities.
The most recent class action lawsuit announced today claims that Coinbase failed to properly secure customers accounts and causing financial harm to users by locking them out of their accounts and also violating federal law by offering and listing securities on its platform(s). The suit was filed through The US District court for the Northern District of Georgia Atlanta.
A class action lawsuit "allows courts to manage lawsuits that would otherwise be unmanageable if each class member were
required to join in the lawsuit as a named plaintiff." The Georgia lawsuit is representing a class of over 100 people.
Read more on the Georgia class action lawsuit against Coinbase on CoinDesk
View the filing
Celsius
Celsius also made headlines today on lawsuits they’ve filed against KeyFi and Prime Trust. The crypto lending platform is accusing custodian Prime Trust of failing to turn over $17 million worth of cryptocurrency. Celsius is also counter-suing KeyFi for allegedly not returning and damaging property owned by Celsius. KeyFi has accused Celsius of operating a Ponzi scheme and defaulting on contract obligations.
In July, Celsius filed for Chapter 11 bankruptcy after closing debts owed to Compound (COMP), Aave (AAVE) and Maker (MKR). Cointelegraph reported on Aug. 16 that the crypto lending platform was on track to run out of money by October, with a report suggesting the company’s debt was closer to $2.8 billion against its bankruptcy filing claims of $1.2 billion deficit. At the time of publication, the combined value of the BTC, ETH, USDC, and CEL tokens Celsius claimed from Prime Trust was roughly $17.4 million.
