Coinbase Sued Over Alleged Account Lockouts and Financial Loss
Coinbase, one of the largest cryptocurrency exchanges, is facing a class action lawsuit alleging it has been 'improperly and unreasonably' locking customers out of their accounts. According to the court filing, Coinbase fails to properly secure customer accounts, leading to severe financial loss for those affected.
The plaintiff, George Kattula, claims that in April 2022, he received an email from Coinbase requesting a password change, but after doing so, his funds were drained from his account. Another $1,000 deposit made from his bank was also unauthorized.
Coinbase admitted the transactions were from an IP address Kattula had never used before, which was located far away. The plaintiff believes Coinbase could have easily identified and prevented these losses, citing several 'obvious red flags' signaling suspicious activity.