A customer lost money, Coinbase was sued?

The victim accused the Coinbase exchange of breaking various laws by not reimbursing the money he had lost.

A customer lost money, Coinbase was sued?

According to file filed in the District Court for the Northern District of California on March 7, plaintiff Jared Ferguson lost $96,000 “90% of his life savings” from his Coinbase wallet following a phone hack.

This person went to the exchange to ask for help but was refused and decided to file a complaint with the court. Earlier, Coinbase responded to Ferguson via an email saying:

“Customers are solely responsible for any problems that occur when devices or passwords are compromised. In particular, you must be solely responsible for the security of your email, password, 2FA code, and device.”

After two weeks of back-and-forth, Ferguson accused Coinbase of violating the Cryptocurrency Transfer Act, as well as section 4A of the California Uniform Commercial Code. In these regulations there is a provision “if the bank allows an unauthorized transaction, both principal and interest must be returned to the customer.” even though Coinbase is nominally not a bank.

To date, the largest US exchange has not yet commented on the incident.

In the past, Coinbase has been repeatedly denounced under various accusations, for example, a legal “storm” with the SEC related to the token listing or a recent $50 million fine for lax KYC…

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