27 Nov 2022
Coinbase has been sued by nearly one hundred customers over its wallet app
Nearly one hundred customers have sued Coinbase, the largest digital currency trading platform in the Western Hemisphere.
Clients Are Fed Up with Coinbase
They claim that Coinbase ignored their complaints about a scam that caused them to lose over $21 million in digital currency.
The Coinbase Wallet, which was downloaded by many users last fall, was the source of the issue.
This wallet led users to fake or malicious websites where they could be tricked into handing over their login information or cryptocurrency so that scammers and hackers could steal it.
The situation has been referred to arbitration. This keeps the specifics out of the public eye and any legal action involving the company and the affected parties within the confines of the court system.
A third-party arbitrator or judge hears the cases and rules in favor of one of the disputing parties.
According to the customers' arbitration demand, Coinbase executives were aware of the situation with the wallet app and did nothing to fix it or mitigate the damage.
They tried multiple times to contact the higher-ups at Coinbase to alert them to the situation, but to no avail. These people are now resorting to more extreme measures to recoup their losses and exact revenge on those responsible.
To say that Coinbase has had a challenging year would be an understatement. Everyone has experienced issues relating to digital currencies in 2022, though Coinbase may have been more negatively affected than others.
After all hiring plans were put on hold and what was initially planned to be a year of massive hiring and raising staff levels to new heights, the exchange announced it would lay off roughly 18 percent of its staff to deal with the crypto windfall the space had been experiencing.
A challenging year for the company
The company's stock shares have also recently crashed and burned because of its dependence on bitcoin, the world's biggest and most well-known cryptocurrency by market cap.
Over the previous 12 months, the asset lost over 70% of its value, and since bitcoin lost so much value so quickly, the digital currency exchange is seeing similar outcomes.
They initially priced shares of the company at over $300 when it first went public in April 2021, but they have since dropped to around $50. It's a depressing and unpleasant sight.
Another SEC investigation is currently being conducted on Coinbase.
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