Traders can file a lawsuit against Coinbase

Traders could lose money due to trading stop on Friday, related to "technical issues" on the exchange
26 December 2017   590

On Friday, December 22, the price of bitcoin went down amid a deep correction of the cryptocurrency market, and one of the world's largest exchanges Coinbase suspended trading for two hours, citing technical problems related to the flow of traffic. The Outline spoke with the legal expert in the field of protecting the rights of investors and consumers Ross Khami.

American stock exchanges have the right to suspend trading only in accordance with the rules of the Securities and Exchange Commission (SEC); if the company intends to make an important statement, or in an imbalance between the number of buying and selling orders.

In the case of cryptocurrency exchanges, the issue of protecting consumers' rights is much more difficult to solve. The SEC has already warned investors that bitcoin-exchanges may unexpectedly completely stop work or suspend trading in the event of technical failures, hacker attacks or fraudulent schemes.

Despite the problems of regulating the new industry, dissatisfied users of Coinbase can sue the company if the decision to suspend trading costs them money, says New York attorney Ross Khami.

Courts have not yet ruled on whether federal securities laws or consumer protection laws apply in the cryptocurrency context. We’re starting to finally see a lot more lawsuits filed against companies that are issuing tokens in the ICO context. We’re also seeing lawsuits filed against exchanges. We don’t yet know how things will pan out with Coinbase, but if investors lose money from a hack or shutting down trading, there is sure to be litigation.

Ross Khami

Despite the fact that the decision to suspend trading is not illegal, this does not mean that investors can not make a claim. Moreover, other exchanges continued to trade in a rapidly declining market and increased traffic.

Kami believes that, given the experience of investors of the infamous MtGox stock exchange, it is unreasonable to store significant funds on stock exchange purses.

Coinbase Confirmed Multiple Charge Issue

Some users were charged for up to x17; Coinbase reports these charges "are in the process of being refunded"
16 February 2018   43

After numerous complaints from users of Reddit, the popular platform for buying Crypto-currency Coinbase confirmed the presence of a bug in the system, because of which the payment for the same purchases was written off several times, in some cases up to 17 times.

We can confirm that the unexpected charges are originating from our payment processing network, and are related to charges from previous purchases. To the best of our knowledge, these unexpected charges are not permanent and are in the process of being refunded. We are running joint investigations with all parties involved, and will provide updates as we receive them.
We are actively investigating some reports from our customers about unexpected credit or debit card charges appearing on their statements from previous Coinbase purchases.

Coinbase Team

This is what affecte users say:

So coinbase hacked?

i noticed double charges posts but 17x what the fuck....2x is a CB mistake, 17x is a hack...

only thing that makes sense... calling bank.. and making a CB ticket...

thepokernit on Reddit

The company does not specify exactly what the bug was caused, but reports that it is solving the problem, and asks users to report all the unplanned charges in the discussion at Reddit.