Coinbase class action overview:
- Who: Plaintiff Brian Carolus filed a class action lawsuit against Coinbase Global Inc., Coinbase Inc. and Coinbase Bermuda Services Limited.
- Why: Carolus claims Coinbase failed to protect its users from a “pig butchering” financial scam.
- Where: The Coinbase class action lawsuit was filed in California federal court.
A new Coinbase class action lawsuit claims the company failed to meet basic legal requirements from allegedly promising to protect customers from financial scams.
Plaintiff Brian Carolus claims Coinbase failed to comply with its legal obligations under the Bank Secrecy Act and California law to verify customer identity and to establish procedures for reporting suspicious activity.
“Coinbase could have prevented many of these scams by simply complying with its legal obligations”, the Coinbase class action lawsuit says.
Carolus argues Coinbase’s failure to comply with the law resulted in significant financial and emotional harm for numerous individuals who have fallen victim to financial fraud.
“Pig butchering” is a type of financial scam where fraudsters use elaborate storylines to convince victims to invest in virtual currency or foreign exchange schemes, the Coinbase class action lawsuit explains.
Coinbase class action lawsuit says users unaware of platform risks
Carolus claims Coinbase promises to reverse transactions suspected of fraud and represents itself as a “trusted” and “secure” platform in order to entice customers.
“Coinbase users are unaware of the significant risks that come with using the platform,” the Coinbase class action lawsuit says.
Carolus wants to represent a nationwide class of consumers who bought or transferred cryptocurrency on the Coinbase platform, the Coinbase Wallet website, or the Coinbase Wallet app. during the yet to be defined statutory period.
Carolus demands a jury trial and requests damages, restitution, injunctive relief and any other relief deemed appropriate by the court.
In 2023, Coinbase agreed to a $100 million settlement with the New York State Department of Financial Services after regulators found the cryptocurrency exchange failed to adequately monitor for money laundering and other criminal activities.
In the same year, Coinbase also faced a lawsuit claiming it failed to protect a user from a hacker who stole 10 Bitcoin from their account wallet.
What do you think about the allegations in this Coinbase class action lawsuit? Join the discussion in the comments.
Carolus is represented by James B. Zouras, Ryan F. Stephan and Justin M. Caparco of Stephan Zouras LLC and Matthew C. Helland of Nichols Kaster LLP.
The Coinbase class action lawsuit is Carolus v. Coinbase Global Inc., et al., Case No. 3:25-cv-03089, in the U.S. District Court for the Northern District of California.
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24 thoughts onCoinbase class action claims company failed to protect users from ‘pig butchering’ scams
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I have invested some money with zenith trading in May of 2024, since then my money has been transferred to coinbase wallet and all at a cost. I had to pay a commission fee before transferring my money to coinbase in the zenith trading platform and since then I’ve been depositing a lot of money to the coinbase address being promised to get the money I invested and still not receiving any of it as promised time and time again