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.
