Crypto market volatality during the bear market is so high that it gives investors and traders the opportunity to main quick profits. Other than that, the markets crash so fast that selling at the moment and buying back might also be profitable. However, such volatility is followed by a high influx in the number of users, which most centralized platforms are unable to handle. Coinbase has also been a culprit of this and faces a class-action lawsuit for crashing during extreme market volatility. Users say that the exchange went down when it mattered the most.
Coinbase’s recent lawsuits
Coinbase has now been facing continuous lawsuits for quite a while now. First was the investigation filed by the SEC for listing security coins on their platform. After this, a Coinbase employee was arrested for insider trading. Then they got slapped with a lawsuit by Bragar Eagel and Squire, a NY-based legal firm, for lying about their business practices. Another company Pomerantz LLP claimed in their case that Coinbase had violated the Federal securities law.
The class-action new lawsuit
Coinbase has been facing backlash for locking users out of their own accounts and asking them to verify themselves. A user on Reddit complained that he was asked to verify his account again after using Coinbase for 8 long years. Plus, they have also been unable to keep their promise of making crypto accessible to users 24/7, 365 days a year. After promising this or making a bold claim of zero downtime, if the exchange crashes during market volatility, then it is disappointing. Many users must have faced major losses due to the same as well. A lot of Indian exchanges also have this problem.
The lawsuit filed also mentions Coinbase’s inability to respond to customers and resolve their concerns or complaints. It finally says that they have been harmed by Coinbase as they lost access to their accounts, crypto, investment opportunities, and personal information. Let’s see how this case goes and whether Coinbase has to pay something to settle the lawsuit.
What are your thoughts as Coinbase faces a class-action lawsuit for crashing during volatile peak hours? And do you think exchanges must focus more on their quality of service? Let us know in the comments below. And, if you found our content informative, share it with your friends.