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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 and my account frozen as well at the end of 2021. Lost over $50,000.00. I had Coinbase since 2014 and never had a problem, they offer me a free beta trial for Coinbase one and two weeks later I get hacked. They lured me to the upgrade by saying it was much safer and that my funds would be insured up to $1 million, all lies and fraud. Please help!
Coinbase is simply a criminal company, out of control and so far, unassailable by any reasonable means. If you sign up with these thieves, be prepared to have your account hijacked, your bank account pilfered and your crypto stolen.
Coinbase has done this to me twice and Robinhood froze me out for three months. I have proof and emails from them on this Evan admitting I got hacked
Hello, I lost $23000 in Coinbase Wallet on 6/6/202 as my funds were suddenly frozen and customer service saying that I was the luck to get selected by Smart Contract process and I need to add $22000 to make it $50K to win a bonus of $15000 otherwise they will be frozen. I don’t have that much and they are saying that they will not be release by Smart contract agreement. This is a lot for me as all my life long savings are gone. Please add me to the list of sufferers to this Coinbase Wallet. Coinbase support is saying Wallet is not part of their business even though they both look similar in app design. US Law enforcement and Legal system need to step up and stop this crime and compensate the customers lost their lifetime savings.
Have you made any progress in your case? I just got hacked for $32k.
Same thing happened to me. Please add me to the list.
On May 22, 2022…I had two wallets stored in Coinbase wallet worth $120,000 usdt was compromised and all funds sent to some unknown smart contract unauthorized….I reported to Coinbase support and they wanted me to provide the hash…..which I did ….and they responded by saying they can’t do anything about it…..they told me the wallet is individual responsiblities…..I told them that my 2 step verifications we’re never alert for funds being moved…..I don’t understand why they published safe and secure wallet when someone can simply remove funds easily
They took my ethereum within four hours of buying it. 750 dollars down the drain and they say they aren’t responsible
They froze my account with 44k xyo coins. Then my account was hacked and they say it mine was due to phishing I used to work for Microsoft as an editorial agent, and am very aware of indications of phishing. Never once did I give any information out to anyone or open a unsecured email.
My Coinbase Wallet was hacked for $50,000 I need help Coinbase won’t bother to help me
My Coinbase wallet has been hacked they stole $1100 from my eth mining pool. I can still see it but I can’t withdraw. Coinbase refused to do anything about it. Costumer service won’t even talk to me. They are complicit with the hackers
I had approx. $2,000 in crypto hacked in April 2022. Coinbase said it was being escalated and they would follow up and I was Locke spurts my account for a month. When I finally regained access all my crypto was gone and now they said they have to escalate it again.