July 22, 2024

Coinbase will pay almost $ 1 million to the victims of the collapsed Bitcoin exchange Cryptsy

The largest American cryptocurrency company Coinbase managed to reach a settlement within the framework ofa class action lawsuit brought by customers of the now-defunct exchange Cryptsy.

In accordance with the decisions of November 27 and 10On December 2019, Coinbase agreed to transfer $ 962,500 to an escrow agent involved in the settlement of the dispute. Previously, plaintiffs have already managed to sue 11,325 BTC.

Proposed Settlement Leidel v Coinbase Cryptsy by ForkLog on Scribd

Judge's Order by ForkLog on Scribd

Thus, the trial is nearing fullcompletion. On April 17, 2020, hearings will be held during which it will be decided whether to approve the settlement agreement or to amend some of its provisions, if necessary.

Cryptsy Exchange shut down in January 2016years, after which US law enforcement agencies became interested in its activities. A class action lawsuit against investors was also filed against Paul Vernon and Cryptsy.

In particular, the owner of the exchange was accused of stealing more than 11,000 BTC in 2014 and destroying evidence in the commission of illegal actions.

In mid-2017, it was reported that millions of dollars stolen from Cryptsy users could be laundered through Coinbase.

The lawsuit stated that the American ExchangeI should have known about the dubious origin of about $ 8.3 million, which, according to former Cryptsy CEO Paul Vernon, were exchange earnings. It is assumed that these funds, which Vernon purposefully stole from users, passed through Coinbase for several years.

ForkLog previously reported a lawsuit with Coinbase due to negligence at the launch of Bitcoin Cash trading in 2017.