Coinbase offers nearly $1 million to the Cryptsy victims

Coinbase crypto exchange expands custodial services in Asia market

Coinbase has recently settled a class-action lawsuit that was filed against the exchange by the victims of the now-extinct cryptocurrency exchange Cryptsy for nearly $1 million.

The settlement between the Cryptsy victims and Coinbase was reached in December 2019. The exact amount of the settlement is $962,500 and it will be transferred to an escrow account. This is made known through two court documents from December 10 and November 27, 2019. The agent will be responsible for distributing the funds to the victims.

After the attack on the cryptocurrency exchange, Cryptsy filed for bankruptcy in January 2016. Cryptsy lost nearly 13,000 Bitcoin and 300,000 Litecoin – all due to hackers. Out of these 13,000 Bitcoins, 10,000 belonged to Cryptsy’s clients.

Right after the attack, victims of the hack filed charges against the founder of Cryptsy, Mr. Paul Vernon for violation of Florida’s Deceptive and Unfair Trade Practices Act, unjust enrichment as well as outright negligence.

In addition to filing the lawsuit, part of the victims launched a special webpage that welcomes all other victims who joined Cryptsy before 2015 and lost funds to come stronger together and voice their concerns.

Coinbase played a very interesting role in the lawsuit. Plaintiffs accused the US crypto exchange of being involved in the laundering of the Cryptsy’s funds. What’s more, Coinbase was accused of supporting the theft by agreeing to launder around $8 million in digital coins.

While Coinbase tried to have the lawsuit dismissed, the motion was denied by court and the recent settlement ends a 3-year long lawsuit.

Coinbase has recently faced a lot of heat, especially in the court room, as LeapRate reported that the exchange faced a negligence lawsuit over mishandling Bitcoin Cash launch.

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