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   1397

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 List Stellar

As reported, at first, the coin will not be available to residents of the UK and the state of New York
19 March 2019   181

Wallet and mobile applications (for iOS and Android) from leading American cryptocurrency company Coinbase now support Stellar Lumens digital asset (XLM).

Stellar’s cryptocurrency, the Stellar Lumen (XLM), powers the Stellar payment network. Stellar aims to connect banks, payment systems and individuals quickly and reliably. Since its launch in 2014, its vision has been to unite the world’s financial infrastructure so that money can flow quickly and cheaply between banks, businesses, and people. The Internet connected the world’s computers so that information could be shared globally. Stellar aims to do the same for money.
 

Coinbase Team

The new asset is available to Coinbase.com users from most jurisdictions. However, at first, the coin will not be available to residents of the UK and the state of New York.