Home News Exchange Coinbase Hit With Lawsuit for Violating ‘Unclaimed Property’ Laws in California

Coinbase Hit With Lawsuit for Violating ‘Unclaimed Property’ Laws in California

March 05, 2018 13:17
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A class action lawsuit has been filed against cryptocurrency exchange, Coinbase. The lawsuit claimed that Coinbase has been violating California’s ‘Unclaimed Property’ Laws and conducting unlawful trade practices.

In simpler terms, the suit accused Coinbase of facilitating the transaction of cryptocurrencies such as ethereum, bitcoin to external addresses such as email IDs as opposed to sending it to users’ wallets.

The petitioners Timothy Fasse, Jeffrey Hansen and other individuals said, “Coinbase users can send Bitcoin, Ethereum, Litecoin and Bitcoin Cash
(collectively “Cryptocurrencies”) to an email address. Plaintiffs and the Class were sent an email from Coinbase stating they had Cryptocurrency, with a link to create a Coinbase account to redeem it. But until 2017, most people never heard of a “bitcoin” or cryptocurrency, so most of these emails were disregarded.”

The filing added that most of the cryptocurrencies went unclaimed, as the recipients were not aware of the same. Instead of notifying plaintiffs and the class, that they had unclaimed cryptocurrencies, or turning those cryptocurrencies over to the State of California as required by California’s Unclaimed Property Law, Coinbase kept them.

The suit asks the exchange to turn over the undelivered cryptocurrencies to the State of California to prevent “unjust enrichment of Coinbase”.

Recently, Coinbase was accused of duplicating charges on users’ debit and credit cards. However, the exchange was redeemed when Visa and payment gateway WorldPay took responsibility of the blame.

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A blockchain enthusiast, a wannabe-crypto investor and an all-around enthusiast! Loves travelling, especially to ASI-protected areas, believes in giving her best shot at everything she does! Definitely an introvert.

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