Coinbase Is Accused of Misappropriating Cryptocurrency

The Coinbase platform is accused of assigning cryptocurrency assets to users without their consent. The lawsuit was filed collectively by a group of people, and the essence of the charge is a violation of the law on unclaimed property of the State of California and the implementation of illegal and unfair business practices.

Another lawsuit was filed against Coinbase, almost at the same time as this one, which accuses the cryptocurrency exchange of the artificial overvaluation of the rate of cryptocurrency.

The current charge was the result of the fact that Coinbase allowed users to send cryptocurrency to people that are not registered on the exchange, in the form of e-mails. The letter contains a link, via which the recipient can register on the platform and receive a certain amount of money.

Everything would be alright and it would be even very convenient, but not all recipients register on the exchange and in fact the money “hangs in the air”, as it does not return to the sender of the cryptocurrency.

As explained in the filing:

“Imagine writing a cashier’s check to a friend. The bank withdraws funds from your account, but your friend never cashes the check. Does the bank get to keep the funds? The law clearly says no. But this is exactly what has happened with Cryptocurrencies sent through…”

According to the prosecutors Coinbase appropriates the money to themselves in such a way, instead of notifying the senders about it, not to mention returning money back to their owners.

The statement reads:

“Accordingly, this class action seeks to recover these unclaimed Cryptocurrencies and deliver them to the intended recipients, as well as all “forks” thereof (e.g. Bitcoin Cash fork of Bitcoin), and “airdrops” related thereto (e.g., ERC20 […] airdrops of Ethereum related tokens)”.

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