Coinbase has settled a dispute with customers of the cryptocurrency exchange Cryptsy that has ceased to exist, CoinDesk writes with reference to documents submitted to the court.
According to the decision, Coinbase will transfer $ 962,500 to the benefit of the escrow agent responsible for resolving the class action lawsuit against Cryptsy. Previously, plaintiffs have already managed to sue 11,325 BTC. A hearing will be held on April 17, 2020, at which it will be decided whether to approve the preliminary agreement or amend its provisions if necessary.
Brandon Leidel, representing the plaintiffs in this class action lawsuit, will receive $ 2,500 compensation for the work done. He sued in 2016, accusing Cryptsy CEO Paul Vernon of using Coinbase to launder millions of dollars owned by trading platform customers.
Leidel, a Cryptsy client in the past, claimed that Coinbase was supposed to actively discourage Vernon’s illegal activities. Coinbase referred to the terms of the user agreement that Vernon signed at the time of registration on the exchange. The court, however, ruled that Cryptsy's customers were not affiliated with Coinbase with the same agreement as Vernon.
When companies go out of business, founders flee the country and the amount at issue is relatively small, most plaintiff law firms would decline to pursue the case. We were the only lawyers in the country to pursue a case against Cryptsy or Coinbase, individually or as a class action, and we were able to obtain multiple meaningful recoveries for victims who would have otherwise been left without any recourse.
Lawyer Marc Vites called the Coinbase and Cryptsy litigation “a tricky business.”