Coinbase-Cryptsy Lawsuit to Proceed to Jury Trial
This was confirmed on Monday
Coinbase has suffered another appeal loss in a lawsuit which was set up by the former customers of the Cryptsy defunct cryptocurrency exchange. Therefore, according to the situation, the case will continue in the Jury trial.
An appeals court based in Georgia affirmed a lower court’s refusal of the appeal by Coinbase on Monday. This lawsuit primarily blames the organization for failure to deter Cryptsy Chief Executive from absconding with the funds from the customers.
Plaintiff Brandon Leidel who is one of the Cryptsy customers, in the case declares that Coinbase would have taken the necessary measures in stopping Cryptsy CEO Paul Vernon from fund laundering through the Coinbase wallet.
Therefore, Vernon has been accused of using the Coinbase platform in the laundering of millions of dollars which he stole from the Cryptsy customers just before the organization collapsed. This is as it was previously reported.
Coinbase then tried to make negotiations in the arbitration case by explaining the user agreements in which Vernon signed just before he started using the wallet. Therefore, last year, a judge ruled that the customers in Cryptsy were not subject to the agreements in which Vernon signed and thus they were not allowed to have an arbitration in the given case.
However, Coinbase appealed the decision and this was denied by a district court.
On Monday, the eleventh circuit court of Appeal affirmed the decision and wrote;
“Leidel does not seek to enforce the terms of the User Agreements, nor does he allege any tort rooted in an allegation that Defendant breached or facilitated a breach of any obligation uniquely imposed by those agreements.”
According to the decisions, it further explained;
“In other words, Leidel’s claims are viable, if at all, without reference to the User Agreements, as the duties Defendant allegedly breached were not imposed by those agreements.”
David Silver in a statement who is a lawyer representing the plaintiffs, he said;
“We are pleased, though not surprised, the appellate court affirmed the trial court’s decision to keep this dispute in the public view … We look forward to having Coinbase answer for its role in the millions of dollars in harm suffered by our clients, and we look forward to resolving these claims in court.”