Coinbase user claims exchange unreasonably locks out its consumers from accessing their accounts: Lawsuit
A user of Coinbase crypto exchange filed a lawsuit against the Coinbase exchange’ manipulated control system on the user’s accounts under extreme volatility situations.
Coinbase is a US-based popular crypto exchange, known to provide crypto trading services under a high compliance framework. This exchange is listed on the Nasdaq exchange and also it is one of the top-ranked crypto exchanges in the United States and 2nd biggest global crypto exchange just after the Binance crypto exchange.
Recently a Coinbase customer initiated a legal case against the Coinbase exchange. According to Plaintiff, Coinbase exchange bans accounts without any reason under particular circumstances.
“(Coinbase) improperly and unreasonably locks out its consumers from accessing their accounts and funds,” the plaintiff said.
Plaintiff also claimed that Coinbase exchange failed to provide services at that level, which it promised to users like 24×7 customer support.
Plaintiff claimed that the Coinbase exchange banned his Coinbase account in an extreme volatility situation and in that situation he was not able to facilitate any trade, which resulted in a huge loss for him.
Angry Coinbase users claimed that the exchange failed to safeguard its customers’ assets or respond to customers’ complaints in a timely fashion.
According to Plaintiff, Coinbase is violating federal and state laws by refusing to register the exchange as a broker-dealer.
Coinbase exchange is already under huge hurdles because of the ongoing past month’s lawsuit. Reportedly the US Securities regulatory body claimed that Coinbase exchange provides securities trading, violating the laws of Securities.
According to experts’ point of view, current complicated regulatory policies on the crypto industry in the United States are creating a very tough situation for the crypto companies to provide crypto services under full compliance.
Due to back to back cases against the Coinbase exchange, the price of COIN stock is facing significant downfall, as a part of the usual fear among the COIN stock Investors.
The current price of COIN is $71.18 and it is down by 18.65% over the last 5 day’s trade price.
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