- A group of crypto users has raised a complaint against Coinbase.
- Coinbase has frozen its user’s accounts.
- The group demands $5 million as a settlement for damages.
Six Coinbase users have accused the company of freezing their accounts without a valid reason for months. The group has also demanded $5 million for damages.
The group is suing the company on behalf of themselves and other Coinbase users who have created an account in the last 4 years and are prohibited to use it.
Joseph Treseder, one of the six coinbase users, states in the complaint filed on Friday in the Federal court of San Francisco that he deposited $30,000 in December. He had a plan to purchase XRP but received an error message saying his login credentials were invalid.
Moreover, the complaint states that as a result of freezing accounts, users were unable to trade or withdraw their funds. This issue induced a loss of money when the price dropped.
Responding to the complaint, a Coinbase spokesperson states:
“All customer concerns are taken seriously. We are aware of the complaint and are investigating the allegations; however, we have no further comment at this time.”
At this point, the complaints are only accusations, and it’s unclear whether all of them are true or if any of the users did something to justify Coinbase locking the accounts. However, the lawsuit is likely to draw even more attention to Coinbase’s customer service practices, which have long been a source of annoyance for many users.
Users accuse CoinBase
Additionally, another user from California, Michael Leone states that he has sent 100 emails to Defendant’s customer service email address. But until now he did not receive any response regarding this issue.
The Coinbase users file a slew of legal claims, including carelessness, breach of fiduciary duty, breach of contract, and wrongful termination. The other part is based on Coinbase allegedly earning interest on their funds while their accounts were frozen. The users have asked for $5 million if they win. Besides, this does not guarantee that a court will agree.
A class-action lawsuit filed against Coinbase is not the first time. Previously, the company had also been chastised for its handling of the Bitcoin Cash fork and its decision to remove XRP. Neither was a success.
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