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   881

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.

TokenSoft to Cooperate with Coinbase Custody

From now on, TokenSoft offers two custodial solutions to security-token issuers
21 December 2018   271

Platform for launching security tokens TokenSoft announced the native integration of the broker-dealer TokenSoft Global Markets, which is regulated by the Securities and Exchange Commission, with Coinbase Custody, the leading custodian platform for institutional clients from the US cryptocurrency company Coinbase.

TokenSoft now offers two custodial solutions to security-token issuers: a digital asset store based on their own development, or a Coinbase Custody solution using a blockchain to prevent the client and custodian from mixing.

In many instances, issuers are looking for someone to manage the security and compliance of custody for them. The current options aren’t fully integrated, use omnibus accounts, and don’t provide the level of data granularity necessary to meet the standards of top accounting firms. Additionally, Coinbase’s approval in one of the strictest jurisdictions, New York, gives everyone a lot of comfort. This new custody relationship will enable our issuers to simply work with one of the most well-known custody platforms in the industry, providing them with security, compliance and peace of mind.

Mason Borda

CEO, TokenSoft

Coinbase Custody Trust Company LLC received approval from the New York State Financial Services Authority (NYDFS) for custodial services in October.

Previously, Coinbase and TokenSoft invested in a startup called Nomics, which intends to index 95% of the data related to cryptocurrency trading.