Finally, the Coinbase CSO, Phillip Martin, has issued a statement about the $5 million lawsuit claims. The security concern has been a principal one in the crypto market. A group of investors have sued Coinbase due to claims of poor security practices. The allegation against Coinbase is that the platform has exposed the accounts to hackers due to a lack of proper security protocols. This is really a strong allegation and if proved right, it might see the platform getting involved in prolonged legal trouble.
In response to this allegation, the Coinbase CSO, Phillip Martin, issued a statement on The Evening Standard. In that statement, Phillip stated that there have been various attacks of differing magnitudes on the protocol. He also stated that they have already constructed a team to ensure the security of the protocol. He added that these allegations stem from the users’ unawareness of the users about the working of the platform. In addition, he stated that there are all necessary security protocols in place. It finally depends on the users to make the protocols work properly. If you wish to know more about the case against Coinbase, this article is the perfect stop for you. Keep reading the article to know more about the claims of Coinbase CSO and the allegations against Coinbase.
Coinbase CSO: The Case Against Coinbase
A Georgia state resident named George Kattula is leading the lawsuit against Coinbase. In addition to this, over 100 users have filed a class action lawsuit in the US District Court. The users claim that the company is blocking their accounts illegally. Thereby, they claim that the company is preventing them from selling their underperforming assets. This ultimately made the users suffer loss and rapid liquidations.
In addition, the lawsuit also accuses Coinbase of improperly following the security protocols. In addition, there are also allegations of randomly suspending crypto withdrawal and selling options without any prior notice. Kattula claimed that three months after opening an account with tokens of around $6,000 worth, a hacker stole all his funds. As per the allegation, Coinbase succeeded in recovering only $1000 worth of funds and stated the remaining asset as “unrecoverable”. In fact, several other accusers have also accused the platform of similar cases.
Though the Coinbase CSO forcibly stated that there are enough security protocols in place, we cannot deny the fact that crypto heists are increasing day by day. In fact, with the rising popularity of cryptocurrencies, the number of crypto heists is also increasing sharply. Hackers stole $100 million worth of cryptocurrencies from Harmony’s blockchain bridge in the month of June. In addition in the same month, a $200 million hack affected the Nomad blockchain. In total, more than $1 billion has already been stolen from the industry this year. Therefore, the Coinbase CSO should be more concerned with improving the security protocols to avoid such cases in future.