Coinbase and Bittrex spoke about Bitcoin Gold

Two popular cryptocurrency related companies voiced their positions on upcoming Bitcoin hardfork; continue reading to learn more
22 October 2017   1147

Coinbase and the Bittrex exchange statements that speak about their positions on upcoming Bitcoin Gold hardfork.

The Bitcoin Gold development team is headed by the CEO of LightningASIC (Hong Kong mining firm) Jack Liao, and it is expected that the separation of BTG from the original bitcoin chain will occur on October 25. However, as said in the Coinbase' statement, privat fork has already occurred, while only the Bitcoin Gold team knows when exactly this happened.

The California company emphasizes that in the first place are the interests of customers and the safety of their funds.

At this time, Coinbase cannot support Bitcoin Gold because its developers have not made the code available to the public for review. This is a major security risk.
 

Coinbase statement

The company also says that its priority at the moment is the addition of support for Segwit2x. At the same time, it will continue to monitor the developments around Bitcoin Gold, and if this chain turns out to be safe and valuable, the company may reconsider its decision in the future.

As for the coins that will appear as a result of the hardfork, Coinbase, as well as the GDAX exchange in its structure, all of them will be saved, but users will be able to access them only if appropriate support is added.

What about Bittrex?

In the meantime, the Bittrex administration also made a statement regarding Bitcoin Gold, while it was more stringent.

At this time, the information and codebase presented by the Bitcoin Gold team is not in a functional state and Bittrex will not commit to opening a Bitcoin Gold trading market.
Bitcoin Gold intends to perform a wallet balance snapshot at Bitcoin block 491,407 but the actual Bitcoin Gold network will launch publicly at a later undetermined date and time (the only guidance is the statement "after the launch on Nov 1").
 

Bittrex statement

Also, Bittrex stressed out that at the moment, Bitcoin Gold doesn't have:

  • Fully formed consensus code
  • Implemented replay protection
  • Adequate code for testing and auditing
  • Publicly known code developers

Thus, the exchange notes, Bitcoin Gold does not meet the established safety criteria, while the removal of a copy of the users' balances at the time of the fork requires more than 24 hours of preparation and implies a stoppage of deposits and withdrawal of funds. The last will be done on Tuesday, October 24 at 10:00 UTC, however, trading on the exchange will continue in normal mode.

Bittrex also plans to "take all reasonable steps" to accrue users of the BTG coin, but until it is a fully supported wallet, it can not guarantee this.

Afterwards, Bittrex released new statement update, were it says that users who have BTC on their balances will receive an equivalent number of BTG coins in a 1: 1 ratio as of 10:00 UTC on October 24 (block 491,407).

Cryptsy-Coinbase Lawsuit to Head to Jury Trial

In the case a former Cryptsy client claims that Coinbase had to prevent Paul Vernon (CEO of Cryptsy) from laundering stolen money through a wallet at Coinbase
24 April 2018   73

The appeal court of the US state of Georgia approved the lower court's decision to reject the appeal of Coinbase on the suit, according to which the company is accused of not being able to prevent Cryptsy CEO from hiding with the money of his clients. This is reported by CoinDesk.

In the case, plaintiff Brandon Leidel, a former Cryptsy client, claims that Coinbase had to prevent Paul Vernon (CEO of Cryptsy) from laundering money through a wallet at Coinbase.

Vernon used Coinbase to launder millions of dollars he stole from his clients before the collapse of Cryptsy.

Coinbase tried to negotiate the suit in an arbitration court, pointing to the custom agreements that Vernon signed when he started using the purse of the exchange. However, last year the judge ruled that the clients of Cryptsy are not bound by the same agreements as Vernon, and therefore - in this case it is not necessary to make an arbitration award.

Coinbase appealed to this decision, but the district court rejected it.

Leidel does not seek to enforce the terms of the User Agreements, nor does he allege any tort rooted in an allegation that Defendant breached or facilitated a breach of any obligation uniquely imposed by those agreements. In other words, Leidel's claims are viable, if at all, without reference to the User Agreements, as the duties Defendant allegedly breached were not imposed by those agreements.
 

The Eleventh Circuit Court of Appeals

As a result, the case now turns into a jury trial in the form of a class action.

We are pleased, though not surprised, the appellate court affirmed the trial court's decision to keep this dispute in the public view ... We look forward to having Coinbase answer for its role in the millions of dollars in harm suffered by our clients; and we look forward to resolving these claims in court.
 

David Silver

Plantiff

Coinbase did not immediately respond to a request for comment of Coindesk.