On June 22. Bisiness Insider reported that Coinbase customers file complaints with SEC
The US Securities and Exchange Commission (SEC) received numerous complaints from clients of the well-known crypto exchange Coinbase with allegations of fraud. More often, customers complain about the theft of crypto assets from crypto exchange. According to traders, they lose thousands of dollars due to errors in the trading platform and can not receive compensation.
Coinbase Customers File Complaint
One of the users filed a complaint to the financial regulator as early as January 2018. He said that in December 2017 he sent $ 17.000 from one account to another, the money never came. The client contacted the Coinbase support service seven times. Each time he was told that they can not help at the moment and asked to contact later.
According to another trader, he lost $ 5.000 because of an error in the trading platform. Users believe that Coinbase deliberately slow down their funds in order to invest in other projects.
One of the Coinbase clients stated:
“Coinbase has been in possession of my funds ($21,000) since August 30th, 2017. They have effectively stolen my money at this point. They have no way to reach them by phone, and they are ignoring my repeated attempts to resolve this matter.”
Also, many users accused the crypto exchange in lack of feedback. They argue that the trading platform support service often did not respond to user complaints. In addition, the exchange has repeatedly ignored customer complaints about a lack of funds on their crypto accounts.
Lawsuites against Coinbase
We note that in March, Coinbase users filed two lawsuits against the company – for insider trading in the listing of Bitcoin Cash and violation of California’s law on unclaimed property.
In the lawsuit filed on March 1, Coinbase is accused of allowing its employees to trade digital currency using information that was not available in public. The next day, another lawsuit was filed against Coinbase, in which the exchange was accused of forcing users to create accounts so that they could receive funds sent to them via e-mail. According to the lawsuit, Coinbase did not explain to users that it will hold this cryptocurrency until the recipient creates an account, which allows to accuse her of unfair business competition and violation of the property rights of the plaintiffs.