Coinbase faces yet another lawsuit with a series of allegations

One of Coinbase’s users has filed a lawsuit against the company for failing to maintain access to its clients’ accounts during times of significant market volatility. Plaintiff George Kattula asserts that the exchange “does not properly employ standard techniques to keep consumers’ accounts secure” on behalf of all Coinbase wallet and account owners.

Coinbase “improperly and unreasonably locks out its consumers from accessing their accounts and funds,” according to the plaintiff’s lawsuit. He contends that this is in violation of the business’s claim to give customers technology that assists in navigating the “real-time, global, and 24/7/365 nature of the crypto asset markets.”

In the very volatile market for digital assets, inconsistent account access can cause a great deal of financial harm. Kattula lost money as a result of being locked out of his account for an “extended period,” which prevented him from making any trades.

Additionally, the complainant alleged that Coinbase does not promptly address customer complaints or protect the assets of its customers. The filing reads:

“Coinbase’s failures have prevented Plaintiff and Class Members from having “full control of [their] crypto” and being able to “invest, spend, save, earn, and use,” or withdraw their funds as [the exchange] promises.”

Further accusations were made by Kattula, who said that by refusing to register as a broker-dealer and claiming that it is required to do so, Coinbase “boldly flouts federal and state laws.”

Coinbase in trouble

Following news that Coinbase was the target of SEC, or Securities and Exchange Commission, investigation, the stock of the company fell last month. The commission also believes the exchange is at fault for listing nine tokenized securities. 

Recently, the exchange has already faced two lawsuits. The first alleged that Coinbase made false and misleading representations resulting in the sharp decline in the stock price of COIN, while the second dragged the exchange to court for not providing the necessary disclaimers to 79 crypto tokens.