2 Mar was filed a class action lawsuit against the popular cryptocurrency platform Coinbase. The plaintiffs accuse Coinbase in violation of the Law on unclaimed property of the state of California and the implementation of the illegal and unfair business practices.
Charges against Coinbase resulted from the fact that the exchange has allowed its users to send bitcoin, ether, litecoin and Bitcoin Cash in the form of remittances demand to external email addresses. The letters also contain a link that allows the recipient to create an account with Coinbase and receive bitcoin. However, not every transaction was reviewed against the requirements of the recipient, which caused a number of questions about the fate of this money. The plaintiffs claim:
«Imagine that you write to your friend cashier’s check. The Bank removes the funds from your account, but your friend never cashes the check. Can the Bank keep the money? The law clearly says no. But that’s exactly what happened with cryptocurrencies, sent via Coinbase.com …».
The plaintiffs argue that Coinbase decided to keep unclaimed cryptocurrency transfers, instead, to notify senders that they were not obtained, and it violates the Law of unclaimed property of the state of California. The statement says:
«The purpose of this lawsuit is to recover unclaimed cryptocurrency and deliver them to the intended recipients, like all coins «forks» (e.g., Bitcoin Cash) and the associated «air assault» (for example, air assault ERC20 […] tokens, Ethereum)».
Funds that cannot be delivered to the recipients due to invalid email addresses, should be transferred to the state of California to «prevent the unjust enrichment of the [Coinbase]».
This lawsuit is just one of the challenges the platform has faced in recent times. In addition to the above charges, the exchange also charged with insider trading. In addition, Coinbase recently had to face the dissatisfaction of the users who are victims of double transaction fees at the site. Subsequently, the Visa took the blame for a temporary failure, however unpleasant the situation managed to spoil the reputation of the exchange.