Coinbase is one of the top cryptocurrency exchanges. The exchange recently went public – the first of its kind to do so – which gives it an unparalleled repute in the crypto space. However, the bull run of 2021 brought heavy criticism on Coinbase and other leading crypto exchanges. The bull run saw staggeringly high traffic which caused various blackouts in the exchange. Coinbase was criticized more heavily because of the leading position it enjoys it’s the market. The blackouts also brought under light users who have had their accounts suspended for prolonged periods of time without any apparent reason.
Six cryptocurrency owners have taken upon their selves to hold the leading crypto exchange responsible. The six crypto owners have filed a class-action lawsuit against Coinbase with the claim that Coinbase had wrongfully suspended their accounts for several months. The crypto owners are seeking $5 million in compensation for themselves. The class action is also open to more plaintiffs and anyone who has been suffering from the same issue is open to join.
The complaint was filed on Friday to the San Fransico federal court by Joseph Treseder. Treseder claims that he deposited $30,000 in his account at Coinbase to purchase XRP; however, he received an error citing invalid login details. The complaint alleges that due to being locked out of their accounts, the crypto owners suffered losses at time – due to being unable to trade.
Coinbase’s spokesperson had said the company is looking into the matter. Whether the lawsuit hold or not in court is another matter altogether but for the time being Coinbase’s reputation has taken a hit. The compliant has also highlighted the incompetency of the customer services department which has been the cause of many users’ woes.