1. Coinbase Refuses to Refund Lost Funds
• Coinbase user lost $96,000 due to account draining after an SMS prompt message
• Crypto investor Jared Ferguson from New York filed a lawsuit against Coinbase in May 2022
• Coinbase denies responsibility for failing to flag several unauthorized transactions
Coinbase Denies Responsibility For Lost Funds
A Coinbase user lost $96,000 due to account draining after an SMS prompt message. Crypto investor Jared Ferguson from New York filed a lawsuit against Coinbase in May 2022, when the victim’s account credentials were lost due to a security breach. The hacker drained the plaintiff’s Coinbase account 24 hours after Ferguson received a text message prompting him to change the password. At the same time, Coinbase failed to blow the whistle on multiple unauthorized transactions during the period, causing Ferguson’s life savings of $96,000 to go down the tubes. The victim says Coinbase should bear responsibility for missing unauthorized transactions on both Federal and State Laws.
Coinbase Proclaims Innocence Blames User in Email
Coinbase sent an email to the unfortunate customer saying, „please note, you are solely responsible for the security of your email, your passwords, your 2FA codes, and your devices.“ However, the plaintiff begs to differ, as his account password was changed from a different IP address and a new device. Coinbase failed to flag the transactions as suspicious while it managed to regain access back into its account 24 hours later only seeing multiple zeros instead of its funds. In addition, this is not an isolated incident as they refused another client’s reimbursement in 2021 who had lost $7 500 from their wallet due SIM Swap hack .
Unethical Practice Takes Toll On Stock Price
Arguably unethical practice like this often makes Coinbase customer support roasting target of Crypto Twitter but it also took toll on its stock price. At press time Coin Base Global Inc (COIN) costs 62.77 with 2.7% decline in last 24 hours Beyond that , Coin base just launched Base Layer- 2 blockchain while Brian Armstrong intends apply transaction monitoring in compliance with regulators .
In conclusion , Coinbase has denied any responsibility for losses stemming from security breaches according state laws . This case highlights how important it is for users store their cryptocurrency safely and be aware potential risks associated with holding digital currency .