Coinbase to Face Trial Over Possible Role in Cryptsy
June 12, 2017 | Back to News
David Silver Quote :
We believe that Cryptsy users that did not sign the contract with Coinbase were entitled to their day in court and be judged by a jury of their peers.
A growing legal dispute between the customers of a now-defunct cryptocurrency exchange and the business itself has ensnared one of the industry’s largest and best-funded startups.
Former customers of the exchange alleged in a complaint filed in December that Cryptsy and its CEO, Paul Vernon, laundered millions of dollars-worth of their funds through Coinbase over a several-year period as part of a bid to abscond with their money.
At the heart of the argument is that Coinbase, as a regulated money services business in more than 30 states, should have known that the approximately $8.3m in funds – which Vernon allegedly claimed were derived from Cryptsy’s profits, as well as his own activities – came from a questionable source.
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