Coinbase Faced with Two Class Action Lawsuits
March has come in like a lion for Coinbase, as they now face two separate lawsuits. The first was a class-action suit filed on March 1 for insider trading, which alleges to have resulting in an artificial inflation in the value of Bcash (BCH). The second, also a class-action lawsuit, was filed March 2, alleging "unlawful and unfair business practices", in violation of California's Unclaimed Property Law.
The former was filed by Jeffrey Berk, filed a suit on behalf of other affected Coinbase users claiming this:
Minutes after insiders were able to buy and sell, Coinbase put a halt on all BCH trading, even cancelling outstanding orders of other customers, claiming no more liquidity. This very action was repeated the next day, with equivalent results. Once Coinbase's customer trades were finalized, the insider activity had artificially inflated the value of their BCH far exceeding fair market value. Please click here to view the full class action complaint.
In the latter case, plaintiffs Timothy G. Faasse and Jefrey Hansen allege:
The analogy used by the plaintiffs to paint a picture of the situation is this:
The intention of the suit is to recover the unclaimed cryptocurrencies (and any currency created due to blockchain forking, e.g. Bitcoin forking and creating Bcash (BCH)), and have them delivered to their originally intended parties. For full disclosure of this case, please click here.