The claim against Coinbase, Inc. (“Coinbase”) filed last week by Vernon Litigation Group on behalf of a Florida investor alleges six figure damages resulting from violations of both law and industry standards. The claim seeks both compensatory and punitive damages, as well as fees, costs, and interest.
The claim asserts, among other things, that Coinbase failed to exercise reasonable care in dealing with customer accounts and failed to implement commercially reasonable security policies and procedures that protect investors who, store, buy, sell, exchange, or otherwise transfer their digital assets on the Coinbase platform. As a result of Coinbase’s failure, an individual posing as one of Coinbase’s employees, conducted unauthorized cryptocurrency transfers in the investor’s Coinbase account, and caused him significant damages (including principal losses of approximately $250,000.00). What is most shocking about the claim is that Coinbase refused or failed to meaningfully respond to the investor for several days. Furthermore, of the $250,000 stolen from the investor’s Coinbase account, Coinbase received thousands of dollars in commission fees from the unauthorized transfers and refuse to return the commission fees to our client, despite being made fully aware of the fraud.
As so, Vernon Litigation Group filed a AAA Arbitration claim, as required by the Coinbase User Agreement, to recover losses based on Coinbase’s actions. Several violations have been presented in the claim, including negligence and negligent misrepresentation.
If you have been a victim of similar actions by Coinbase or other cryptocurrency exchange platform, please contact Vernon Litigation Group today. Our financial and cyber-security attorneys are available to discuss your claim in a no-cost, confidential consultation.