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   1846

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 Have Over 960k BTC in a Vault

The company does not have direct access to these funds, which are also insured by the Federal Deposit Insurance Corporation
02 December 2019   167

Coinbase cryptocurrency exchange stores about 966,230 BTC in cold wallets of its custodian service, whose capitalization is about $ 7.1 billion. The company does not have direct access to these funds.

Exchanges' Funds
Exchanges' Funds

The second place in terms of funds in the cold storage is held by the BitMEX exchange with 265,140 BTC ($ 1.94 billion). This is followed by the Bitstamp platform - 229,490 BTC ($ 1.67 billion), Bitfinex - 146,120 BTC, Kraken - 136,780 BTC, Bittrex - 131,340 BTC and Coincheck - 35,090 BTC.

Note that Coinbase cryptocurrency deposits are insured by the Federal Deposit Insurance Corporation. However, any centralized management puts users ’assets at risk, experts recall.