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   155

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…


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 Stops Multisig Vaults Support

. Support for multi-signature vaults will stop on April 19 this year
23 March 2018   51

The American cryptocurrency company Coinbase stops multisig vaults support, whose additional level of security is provided by the multi-signature function. This is reported by

Among the main reasons for this decision, representatives of the company call the low popularity of this option among customers, as well as negative feedback from them. Support for multi-signature vaults will stop on April 19 this year.

By removing this functionality, engineering time spent on supporting multisig vaults can be reallocated to continued investment in the security and reliability of our platform, which is of critical importance to our customers.

Coinbase Team

Also company explained that the increase in the number of bitcoin hardforks complicates the maintenance of such vaults, as well as ensuring the possibility of withdrawing coins that appear as a result of these events.

For users of multisig vaults, the company recommends making sure that they have two private keys required to manage their assets.