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Class Action lawsuit claims Coinbase failed to protect customers from fraud

Class Action lawsuit claims Coinbase failed to protect customers from fraud

The world's largest crypto exchange, Coinbase, is facing a Federal Class Action lawsuit over allegations that it failed to secure user accounts from hackers and thieves.

The complaint filed by commercial trial attorneys at BraunHagey & Borden LLP alleges that Coinbase misrepresents itself as having never been hacked and that its digital wallets are secure. The plaintiffs allege that Coinbase’s account security system is vulnerable to attack and that the platform has failed to prevent a series of breaches that have caused significant user losses.

These latest breaches occurred less than a year after Coinbase settled similar claims by the California Attorney General and paid $300 million.

The suit allege that the company was indifferent to consumers’ losses. When victims sought help from Coinbase, it "routed them through its automated complaint processing — a recursive loop of impenetrable screens that prevented them from explaining their situation to any human being and was incapable of redressing the theft of their savings."

The suit is seek restitution, civil and punitive damages, and injunctive relief, among other remedies.

Trial attorney Matt Borden, says: "Coinbase plays a valuable and important role as a financial institution with billions of dollars in custodial funds. It needs to take that role seriously as an industry-leading platform used by ordinary consumers."

Coinbase has yet to comment on the allegations.

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