A federal judge has ruled that a class-action lawsuit against Coinbase, one of the largest and most popular digital currency trading platforms in the world, can move forward.
Coinbase Will Soon Find Itself in Court
Coinbase is easily one of the biggest crypto exchanges out there. At the time of writing, it has a valuation of more than $40 billion, yet for one reason or another, it doesn’t not seem to have a customer service department. The company has been hit with several customer service complaints over the past few years, but this has not gotten the company to hire the staff necessary to tackle individual calls or provide details and answers over a phone system.
This has proven to be very frustrating for many of its customers, and now there is a class-action suit hitting the company. Initially, Coinbase sought to use arbitration methods to work things out with the person bringing the suit to light. However, a judge has ruled that this is not a possibility given that arbitration should be utilized only when it supports both parties involved in the suit.
The dispute is being brought forth by a man named Abraham Bielski, who claims that someone posing as a PayPal representative gained access to his Coinbase account and made off with roughly $31,000 in digital funds. Bielski says Coinbase repeatedly ignored his attempts for aid or did very little to offer him the information he was looking for.
U.S. District Judge William Alsup, who’s overseeing the case, ruled in favor of the plaintiff, claiming that Coinbase had ultimately violated the Electronic Funds Transfer Act by not responding in an appropriate or cordial manner. He stated:
Because the delegation clause imposes an onerous, unfair burden beyond that of a typical delegation clause, this order finds it substantively unconscionable… and hence, unenforceable.
2018 saw the number of customer service complaints against Coinbase more than double, with many of the complaints centering around money not being available when it was promised.
Coinbase has long been one of the largest – and most revolutionary – crypto companies in business today. The firm recently announced that despite halting transactions for several illicit accounts that allegedly stemmed from Russia, it would not stop its services for the everyday people of the country – despite calls from the likes of Elizabeth Warren – as they were not involved in the recent Russian invasion of Ukraine.
Russia Deserves a Chance
The ruble – the nation’s fiat currency – has tanked heavily at press time, and thus Coinbase representatives claimed that the Russian people had every right, just like everyone else, to seek methods of keeping their wealth stable and steady through crypto during times of economic strife.
The digital currency company was also the first of its kind to go public one year ago in April 2021.