Coinbase Class Action Litigation

 

On August 15, 2022, Herman Jones, LLP filed a class action lawsuit on behalf of George Kattula and other users of the Coinbase cryptocurrency platform. On October 21, 2022, the complaint was amended to add fifty-four additional named plaintiffs. Among other contentions, the amended complaint asserts that contrary to its representations, which are designed to induce consumers to entrust Coinbase with funds, Coinbase does not properly employ standard practices to safeguard and protect user accounts on Coinbase.com or Coinbase Wallets. The First Amended Complaint further contends that the Coinbase exchange (Coinbase.com) and Coinbase Wallet are riddled with security flaws, and that Coinbase improperly and unreasonably locks out its consumers from accessing their accounts and funds, either for extended periods of time or indefinitely. Among other relief, the First Amended Complaint seeks damages against Coinbase for breach of fiduciary duties, breach of contract and violations of the Electronic Funds Transfer Act and Regulation E.

Notable Filings in Kattula v. Coinbase Global, Inc. et al.:

Class Action Complaint (filed Aug 15, 2022)

• Class Action Complaint (PDF)

First Amended Class Action Complaint (filed Oct 21, 2022)

• First Amended Complaint (PDF)

Plaintiffs’ Motion to Appoint a Receiver (filed Nov 16, 2022)

• Motion (PDF)
• Memorandum in Support of Motion (PDF)

Plaintiffs’ Opposition to Coinbase’s Amended Motion to Compel Arbitration (filed March 24, 2023)

• Opposition to Mot. to Compel Arbitration (PDF)

Plaintiffs’ Response in Opposition to Coinbase’s Second Motion to Strike (filed May 3, 2023)

• Opposition to Second Mot. to Strike (PDF)

In the News:

• SEC.gov (Jun. 6, 2023): SEC Charges Coinbase for Operating as an Unregistered Securities Exchange, Broker, and Clearing Agency
• Law360 (Jan 24, 2023):  Coinbase Says Data Security Suit Belongs In Arbitration
• Law360 (Dec 7, 2022):  Ga. Judge Stays Receiver Motion In Coinbase Security Suit
• CoinDesk (Aug. 23, 2022):  Crypto Exchange Coinbase Faces Class Action Lawsuit Over Alleged Lapses in Security
• Law360 (Aug 16, 2022):  Coinbase Slapped With Suit Over Inadequate Account Security