Coinbase is accused of violating California law

Another class action lawsuit is filed against Coinbase due to allegations of unfair business practices
04 March 2018   565

The lawsuit was filed on March, 2 and accuses Coinbase of breaking Unclaimed Property Law in California along with operating business in an unlawful manner. Coinbase platforms allows users to send digital currency via wallet address or email. The latter provoked the accusations. Specifically, Coinbase user sends some amount of cryptocurrency in an email with a link for a recipient to create a Coinbase account and claim the digital currency. Such technique can be abusive as it is reported numerous transactions were yet to be redeemed. On top of that, the system isn't supposed to notify the sender of an unclaimed amount of cryptocurrency.

Imagine writing a cashier’s check to a friend. The bank withdraws funds from your account, but your friend never cashes the check. Does the bank get to keep the funds? The law clearly says no. But this is exactly what has happened with cryptocurrencies sent through Coinbase.com…

 

Excerpt from the lawsuit filing

Coinbase now is suspected to have kept the unclaimed digital currency, and this along with not notifying the sender violates the State of California's Unclaimed Property Law. Instead, the unclaimed cryptocurrency should be turned over to the State of California to prevent Coinbase from unlawful enrichment.

Accordingly, this class action seeks to recover these unclaimed Cryptocurrencies and deliver them to the intended recipients, as well as all “forks” thereof (e.g. Bitcoin Cash fork of Bitcoin), and “airdrops” related thereto (e.g., ERC20 […] airdrops of Ethereum related tokens).

 

Excerpt from the lawsuit filing

This case is the second lawsuit against Coinbase - the first one concerns an exchange of the alleged insider trading. Additionally, Coinbase had trouble with multiple charge of purchases, that resulted in VISA acknowledging the shortcoming on their side.

Coinbase to Open Investment Index Fund

According t Coinbase, there is a "huge interest" in the cryptocurrency among investors who can invest in new assets from $ 250,000 to $ 20M
13 June 2018   205

The largest American cryptocurrency company Coinbase announced the launch of an index fund, focused on accredited investors.

According to representatives of Coinbase, there is a "huge interest" in the cryptocurrency among investors who can invest in new assets from $ 250,000 to $ 20 million.

Coinbase Index Fund gives investors exposure to all assets listed on our exchange, weighted by market capitalization. As we announced yesterday, the fund will be rebalanced to include Ethereum Classic, and more assets when they are listed by Coinbase in the future.

At this stage, Coinbase Index Fund is only open to US-resident accredited investors. We’re working on launching more funds which are accessible to all investors and cover a broader range of digital assets.
 

Reuben Bramanathan

Product Lead, Coinbase Asset Management

On 12th of June, Coinbase announced support for the Ethereum Classic cryptocurrency. Support includes the addition of an asset to the CoinbasePro exchange (GDAX), the Coinbase Custody service, and the inclusion in the new index fund.