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Coinbase Wallets Class Action Overview:
- Who: A pair of Coinbase wallet holders locked out of their crypto accounts filed a class action lawsuit Tuesday.
- Why: The cryptocurrency exchange company allegedly froze them and other account holders out of their Coinbase wallets or allowed them to be hacked.
- Where: The class action lawsuit was launched against Coinbase Global, Inc and Coinbase, Inc in California federal court.
A pair of cryptocurrency users say their Coinbase wallets were either hacked or frozen without warning and their pleas to release their accounts so they could access funds went unheeded by Coinbase Global, Inc and Coinbase, Inc, in a class action lawsuit lodged against the companies in California federal court Tuesday.
Lead plaintiffs, Cristian Kelly and Kenneth Thall, want to represent others who lost access to their Coinbase wallets. They say Coinbase, the largest cryptocurrency exchange in the US, misled them about the security of its services and “real-time” access to funds stored with the company.
Coinbase users can store their cryptocurrencies in a digital “wallet,” as well as buy, sell, spend, and trade cryptocurrency.
Coinbase Wallets Hacked, Frozen Without Warning
Kelly claims that his Coinbase wallet — containing approximately $18,000 in Ethereum cryptocurrency — was potentially hacked when he called the company to add a feature to his account. He says that instead of helping him get to the bottom of the situation, Coinbase froze him out of his account for months.
Thall alleges that he was alerted by his bank that his Coinbase wallet containing about $8,000 in Bitcoin may have been hacked. Thall says that when he brought up his concerns to Coinbase, he was similarly locked out of his account for an extended period of time.
Kelly and Thall say that they decided to store their cryptocurrency in Coinbase wallets based on the companies’ promise to provide “customers a secure way to purchase, store, and transact in crypto assets” and provided “24/7/365” access to their funds.
Instead, the plaintiffs say that they were locked out of their Coinbase wallets for extended periods of time.
“Because of the extreme volatility of cryptocurrencies’ value – with freefalls of 40% within 24 hours not unheard of – the inability to access an account to sell, buy, or trade cryptocurrency leads to severe financial loss,” alleges the class action lawsuit. “Making matters worse, Coinbase fails to timely respond to customer pleas for support and help, and also fails to preserve and safeguard customer funds as it promises.”
Indeed, Kelly and Thall each claim that the crypto company ignored their repeated requests to unfreeze their Coinbase wallets. They want to represent consumers nationwide who signed on with the rapidly growing crypto exchange company.
The plaintiffs are seeking damages on behalf of Coinbase wallet holders, along with a court order forcing the company to unfreeze accounts.
Coinbase has found itself in legal hot water recently, with another group of Coinbase wallet holders lodging a class action lawsuit in California federal court in June. Last year, the company paid out nearly $1 million to settle claims that they aided and abetted the theft of Cryptsy cryptocurrency.
Do you have a Coinbase wallet? Have you ever been hacked or locked out of that account for no reason? Tell us about your experience in the comments section!
The plaintiffs are represented by Timothy G. Blood, Thomas J. O’Reardon II, and James M. Davis fo Blood Hurst & O’Reardon, LLP and James M. Evangelista, David J. Worley, Kristi Stahnke McGregor, and Leslie G. Toran of Evangelista Worely, LLC.
The Coinbase Wallets Class Action Lawsuit is Kelly, et al. v. Coinbase Global, Inc., et al., Case No. 3:21-cv-06010 in the U.S. District Court for the Northern District of California San Francisco Division.
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167 thoughts onCoinbase Wallets Hacked, Frozen Without Warning, Claims Class Action Lawsuit
I was hacked for $275,000.
April 21 I lost $88,000 form Coinbase wallet. They keep giving me the runaround trying to discourage me from keep looking into it telling me somehow it was my fault for the security breach I’m devastated 72 years old and lost his life saving you think what’s the sense of living anymore
April 21 I had $88,000 in Coinbase Wallet and it’s gone They giving me the runaround just to get me tired enough to do anything about it I’d like to be part of the lawsuit I’m 72 years old my life saving is gone
Same
My Coinbase account was hacked on March 29, 2022.
The hacker sold about $200 of my cryptocurrency. He sent it who-knows-where.
The hacker then used my bank debit card on file to buy $550 worth of new cryptocurrency. The hacker then sent it who-knows-where.
About $30 worth of cryptocurrency was not stolen.
A few days after the March 29 hacking, Coinbase then sold my cryptocurrency and applied it to the $550 purchase of new cryptocurrency.
In a formal complaint, Coinbase not only refuses to give me back the about $200 in stolen cryptocurrency. They think I owe them for the $550 purchase in new cryptocurrency.
The hacker used I.P. address 66.115.189.137 in Georgia. I have never had that IP address. I have never visited my account from Georgia.
I am on the fence about spending $200 for arbitration from the American Arbitration Association. I will gladly join a legitimate class action lawsuit.
great
My Coinbase wallet was frozen and hacked. Over $500,000 was stolen from my wallet during ethereum mining. I thought this wallet was risk free and safe since it was managed by Coinbase. Jeff
Gracias!
Thank you very much. You’re the best !
My wallet was clearly hacked and Coinbase refused to even hear me out. 15k was stolen from me and I have all the proof! They won’t even investigate. I was told to contact “the authorities”. I was locked out and everything was wiped out. The hacker(s) even gain access to my bank account through the Coinbase link and tried to take an additional 4k. Luckily my bank stopped it, but now Coinbase says I owe them the funds for that transaction. I don’t know what to do.