Lawsuits and legal concerns have been the flavor for Q4 2022. Gemini and its founders, the Winklevoss twins, were recently sued for fraud. Now, Coinbase customers who sued the company over unauthorized crypto transfers are continuing to withhold their account information. Per a renewed emergency motion filed in federal court, they’re also obstructing efforts to move their lawsuit to arbitration.
Disagreements Arise Between Coinbase And Users
Per the filings in the US District Court for the Northern District of Georgia, the plaintiffs agreed to provide the requested information. The same included emails, usernames, and Ethereum addresses. They explicitly agreed to do so in exchange for a protective order.
Bloomberg Law highlighted,
“Coinbase told the court in a Tuesday motion that it and the users disagree on whether to include a provision in the protective order that says the cryptocurrency exchange hasn’t waived its right to arbitrate the dispute.”
The exchange further alleged that it couldn’t match plaintiffs to their respective arbitration without the customers’ account information.
Particularly, the said federal lawsuit was filed in August. It accused Coinbase of having negligent cybersecurity measures that failed to prevent the unauthorized transfer of crypto.
Meanwhile, in its original emergency motion filed last month, Coinbase asserted that the refusal to provide this basic information was “an improper attempt” to undermine its right to compel arbitration under the law.
Correspondingly, crypto firms from the space have been drowning in legal waters. As a result, their legal and advisory fee has been mounting up. The figure for the Celsius lawsuit currently stands around $53 million.
At the moment, Coinbase shares have been on a decline. At press time they were valued at $32.53, all set to close the year at an all-time low.
Read More: Coinbase to End Year With All-Time Low Stock Price