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   1282

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.

New York Attorney General Quit, Accused by 4 Women

Eric Schneiderman is known in cryptocurrency world as a person that send request to 13 cryptocurrency exchanges
08 May 2018   225

The Attorney General of New York State and the well-known opponent of the Trump Administration, Eric Schneiderman, left his, after The New Yorker reported that he was accused of attacking four women. This writes The New York Times.

It’s been my great honor and privilege to serve as attorney general for the people of the State of New York. In the last several hours, serious allegations, which I strongly contest, have been made against me. While these allegations are unrelated to my professional conduct or the operations of the office, they will effectively prevent me from leading the office’s work at this critical time. I therefore resign my office, effective at the close of business on May 8, 2018.

Eric Schneiderman

Ex Attornet General, New York

As reported by The New Yorker, two women said that Schneiderman strangled and beat them from time to time; they had to seek medical help. The third alleged victim reported that he "released her cruel slaps." The fourth shared similar experiences.

All victims were with Schneiderman in a romantic relationship and said that he showed cruelty in their attitude without mutual consent.

In mid-April, Schneiderman sent inquiries to 13 exchanges of cryptocurrencies and asked them to fill out a questionnaire that required information on "operations, the use of trading bots, conflicts of interest, work stops and other key points."

Many exchanges supported the initiative of the prosecutor, and Coinbase even disclosed some of the information in public. At the same time, the Kraken exchange refused to respond to the request, arguing that it was unwilling to support inadequate regulation of the New York-based cryptocurrency area.