BLOCKNEWS GEORGIA

By Nina Kikava - News - 3 weeks ago

Coinbase Is Facing a Lawsuit

According to the court documents, that was published on November 20, the court, that U.S cryptocurrency exchange and wallet provider Coinbase will face from users, will be held on January 31.

The lawsuit originally was filed earlier this year, and it failed to make it to the court in October. The lawsuit was filed by Jeffery Berk, in order to address insider trading of Bitcoin Cash among Coinbase officials. He filed the lawsuit in 2017 and it finally is reaching the court in January.

As the new filing states:

“The sudden launch (of BCH) was effectively part of an attack by Coinbase and (CEO Brian Armstrong) to depress the price of BTC and to inflate the price of BCH, to encourage more transactions and greater profitability for Coinbase,”

Approximately one month is given to Coinbase, in order for the company to respond to the initial hearing that will be held in January. Coinbase has time until December 20.

Also, Judge Chhabria stated that Coinbase mismanaged Bitcoin Cash rollout. The company made an investigation on this matter and found out that this kind of activities were true.

The recent announcement about Bitcoin Cash’s hard fork has casued crypto market’s high volatility and chain split.

This is not the first time when cryptocurrencies are in the center of attention regarding lawsuits. As BNG reported earlier, there was first Bitcoin case in Singapore a few days ago. According to The Straits Times report, published on November 21, liquidity provider B2C2 is suing crypto exchange Quoine. This is Singapore’s first court case that is connected to Bitcoin.