Coinbase has been a reliable exchange for many years in the US, however, in the recent past, it has been faced with several lawsuits by dissatisfied customers. One of the customers alleged that insider trading by employees in the exchange company while another one accused the exchange of failing to deliver digital currencies to people who did not have accounts.
These lawsuits come as Coinbase and other exchanges are increasing their staff adding regulatory experts to legitimize themselves as they await the government to impose strict rules.
The Bitcoin Cash insider job in Coinbase
The initial lawsuit was launched at San Francisco Federal Court after the exchange announced in December that it would enable the purchases of Bitcoin Cash. The Customer complained that the company told its staff a month in advance about the launch of Bitcoin cash. The knowledge by the employees saw the staff instantly swamp Coinbase with Buy and Sell orders thus disadvantaging other traders.
When the incidence was noticed Coinbase CEO Brian Armstrong stated that the company would investigate the matter and why the price of Bitcoin Cash went up hours before the announcement on Dec. 19th. He went on to state that any employee or even a contractor found to have terminated internal policies would be laid off.
After Armstrong’s statement, everything went silent, and the results of the investigation have never been tabled. According to the March 11 lawsuit:
“To date, Coinbase has never disclosed the result of its purported investigation.”
In the second lawsuit, two men have sued Coinbase because they are unable to redeem Bitcoin which was transferred to them through Coinbase via their email address back in 2013. The two stated that they got constant reminders and when they tried to recover the Bitcoin they noticed that the links provided by Bitcoin were all broken. They are accusing the company of holding their funds, and they are ready to bring on board many other people who are in similar situation. The company has however remained silent about the lawsuits.