George Spencer

December 2, 2021


The aggrieved ex-customers of the cryptocurrency exchange platform are displaying their anger towards the hacking that happened to their accounts not long ago. The customers have filed a class action suit against the company. The suit has Coinbase Global Inc. and other unnamed executives and employees as defendants over data breaches by the company which they claim led the customers into losing their digital assets to hackers.

Adam Alfia, the plaintiff that brought the suit is a trader who is one of the victims of the hack. $50,000 worth of ETH was stolen from his account. When he reached out to Coinbase, they blocked his account for two months. This is a behavior the company’s been known to exhibit over the years.

“Members of the class are so numerous that their individual enjoinder is impractical. Plaintiff estimates that there are no less than 1,000 persons in the identified class,” says Alfia. The suit is accusing the company of breach of contract, negligence, fraud, and negligent misrepresentation.

Coinbase’s failure to stick to the terms and conditions of their platform’s agreement, both the express and implied provisions contained therein, is a breach of contract.

Coinbase’s failure to fulfil their duties towards their customers to appropriately secure their customers’ and the putative class’s private information and cryptocurrency from unauthorized transactions and dissemination is negligent misrepresentation.

Straight up, the plaintiff is accusing Coinbase of falsely claiming that it maintains proper physical, technical and administrative defence mechanisms to protect the security and confidentiality of the personal information of its customers either knowingly or unknowingly.

Also Read:  Uniswap, Solana, and Cardano networks are rapidly growing

The plaintiff revealed a pattern of account takeovers similar to the one like theirs, where customers’ money simply vanished from their account overnight, and Coinbase’s infamous poor customer service that left the customers hanging and angry.