SAN FRANCISCO (Legal Newsline) - A class action lawsuit against the country's largest cryptocurrency investment platform says billions of dollars are in danger of being stolen.
The suit, filed Aug. 23 against Coinbase, says security failures have led to the repeated theft of customer accounts. Pursuing the case are attorneys at Braunhagey & Borden in San Francisco and New York.
"The company exacts substantial fees and commissions for this service and is one of the most highly valued cryptocurrency service providers in the world," the suit says. "However, Coinbase does a poor job of protecting its user accounts from unlawful intrusion and thievery.
"And it does an even worse job of working to mitigate those thefts after they occur - facing ordinary consumers to navigate a faceless and impenetrable automated 'customer service' process that leads nowhere."
Plaintiff Manish Aggarwal says he bought several hundred thousand dollars' worth of Bitcoin, but in April 2022, hackers gained access to his electronic "wallet" on Coinbase and ttook more than $200,000.
"When Plaintiff tried to alert Coinbase, the company routed him through its automated complaint processing - a recursive loop of impenetrable screens that prevented him from explaining his situation to any human being and was incapable of redressing the theft of his savings," the suit says.