Coinbase Appeals Decision in Cryptsy Collapse Lawsuit

David Silver Quote :

We're confident the 11th Circuit will agree with Judge Marra, and Coinbase will be held accountable for the role it played in the theft and laundering of Cryptsy clients' assets.

Coinbase is appealing a court decision from earlier this month in a lawsuit filed on behalf of customers of the now-defunct cryptocurrency exchange Cryptsy.

As CoinDesk previously reported, former customers of Cryptsy have alleged that the exchange and its CEO, Paul Vernon, used Coinbase – which operates a regulated wallet service as well as a digital currency exchange – to launder and steal millions of dollars worth of user funds over a several-year period. Coinbase, those customers argued in a lawsuit filed in December, should have scrutinized the fund movements more closely.

The startup countered that those users were bound by agreements signed by Vernon and Cryptsy, and sought to resolve the dispute in arbitration. On 1st June, US District Judge Kenneth Marra shot down that request, arguing that Cryptsy's customers weren't bound by those terms of services.

Court documents show that, on 13th June, Coinbase asked the US Circuit Court of Appeals for the Eleventh Circuit to overturn that decision. A representative for the startup declined to comment when reached.

Read the rest of the article.

Confidential Free Consultation

  • This field is for validation purposes and should be left unchanged.