Users Sue Coinbase for Keeping Unclaimed Coins

The US crypto exchange allegedly appropriated users’ unclaimed digital money.

by Viko
05 March • 1.5
In News
California-based Restis Law Firm has filed a complaint with a local court, claiming that US crypto exchange Coinbase has illegally appropriated cryptocurrency, which was sent by e-mail by one user to another, who did not claim it.

The document was filed with the United States District Court for the Northern District of California on behalf of two individuals, Coinbase customers, who seek to be compensated.

According to the plaintiffs - Timothy G. Faasse and Jeffrey Hansen - they are not the only ones who have suffered similar financial losses, so the lawsuit applies to “all persons and entities who were sent Cryptocurrencies such as Bitcoin, Ethereum and Litecoin through Coinbase to their email address, and who never claimed such Cryptocurrency”.

Coinbase logo

The court document states that before 2017 “most people never heard of a “bitcoin” or cryptocurrency”. So, large amounts that were sent via e-mails remained unclaimed and were never returned.

According to the California law, Coinbase should have informed the affected that they can take their digital money back. Another option was to hand them to the state’s authorities. Coinbase kept them instead. The key accusation against Coinbase is of “unlawful and unfair business practices”.