According to a new emergency motion filed in federal court, COINBASE clients are refusing to release their account information, stalling progress toward moving their claim to arbitration. A recent application in federal court indicated that the plaintiffs would provide the required information in exchange for a protective order.
A recent application in federal court indicated that the plaintiffs would provide the required information in exchange for a protective order.
Coinbase objected to the agreement and sought a provision in the protective order that would allow the firm to seek arbitration for the dispute.
Coinbase was unable to reconcile consumers to their separate arbitration agreements while this issue was still being resolved. Coinbase requested a hearing in response to the latest emergency motion.
The lawsuit claims that Coinbase failed to secure its users’ accounts, leaving them vulnerable to theft and unlawful transfers. It also accused Coinbase of causing financial harm to users by locking them out of their accounts, either permanently or temporarily, as well as failing to comply with federal requirements by listing securities on its trading platform.
The dispute has laid bare previously unknown vulnerabilities with cryptocurrency firms’ inadequate cybersecurity practices. The crypto exchange has previously filed various arbitration cases with the United States Supreme Court.
