Cryptsy case is reopened with charges against Coinbase

On June 4 the judge in the U.S. District Court for the Southern District of Florida has reopened the case of Cryptsy exchange with charges against Coinbase
06 June 2018   1422

In early 2016 then-prominent cryptocurrency exchange service Cryptsy collapsed with claims that it had been hacked and the funds had been stolen. The clients were experiencing problems with access to their accounts and fund withdrawals for several month before that, so the charges of mismanagement and fraud were pressed and the class-action lawsuit was filed against Cryptsy's CEO Paul Vernon. In the end, it led to an $8.2 million judgment against him.

And the story continues with the new player, this time more familiar to recent market players – Coinbase. December 2016 was the time for class-action investors of Cryptsy to file the next lawsuit against Coinbase. The focus being that Coinbase should have prevented Vernon from funneling investors' money through their service. Coinbase tried to argue that the clients are alrady bound by the arbitration on Vernon's case, but the initial judgement and two appellate courts' decisions were against Coinbase, which led to the order to reopen the case by US District Judge Kenneth Marra on June 4.

According to the plaintiff's motion to reopen the case, Coinbase didn't oppose the fact. We'll see the details of the proposed schedule before the end of the week, if the alleged phone conference between the defendant's and plaintiff's counsel worked out to mutual agreement.

You can read the full text of the motion to reopen the case on the following link.

Coinbase to be Ranked 1st at New CryptoCompare's Rate

New exchange's benchmark is designed to combat fake trading volume on unregulated exchanges
13 June 2019   183

Analytical service CryptoCompare has launched a rating system for more than 100 platforms for the spot cryptocurrency trading. According to service representatives, it should be a comprehensive, detailed and reliable source of information, and meet the industry’s demand for data transparency.

CryptoCompare combined methods of quantitative and qualitative analysis. The system does not take into account the total trading volume, but the ratio of volume and volatility in combination with the standard deviation of volumes based on more than 30 metrics. In theory, this will help to deal with the problem of fake trading volume on unregulated exchanges.

After analyzing the data for May, the service assigned the first place to the Coinbase, and the top three were closed by Poloniex and Bitstamp. Top 10 also includes BitFlyer, Liquid, itBit, Kraken, Binance, Gemini and Bithumb.

It is noteworthy that this rating is somewhat different from the list of trusted exchanges of Bitwise Asset Management, which in March reported to the US Securities and Exchange Commission (SEC) about the problem of fake trades. Thus, Bitwise considers Bittrex and Bitfinex to be reliable, but they are not in the top ten from CryptoCompare - instead of them, South Korean Bithumb, which was hacked twice during the year, and Liquid, which announced the upcoming listing of tokens Gram, which supposedly don't know anything about in Telegram .