Coinbase Nightmare Continues With New $8m Cryptsy Lawsuit

Coinbase Nightmare Continues With New $8m Cryptsy Lawsuit

Desperate times continue at Coinbase – while one user has filed a motion to block IRS access to its records, a law firm is now suing the company for an alleged role in an $8.2 million fraud racket. New Lawsuit as Regs Bite Coinbase Again. In a class action lawsuit filed in Florida by Silver Law Group and Wites & Kapetan, Coinbase purportedly allowed Paul Vernon, ex-CEO of now-defunct exchange Cryptsy, to convert bitcoins worth over $8 million over a three-year period. “Despite Mr. Vernon’s assertions of business revenue and personal ownership, Coinbase — as a Money Services Business....


Related News

Class Action Lawsuit Against Cryptsy Now Targets Coinbase

A lawsuit filed against Coinbase alleges the money transmitter did not fulfil its regulatory requirements to do its due diligence and investigate Mr. Vernon’s activity and his Coinbase accounts. Coinbase Accounts Allegedly Held Stolen Funds. When $8.2 million in customer funds went missing from Cryptsy user accounts in 2014-15, a class action lawsuit was....

Lawsuit Against Cryptsy To Proceed As Planned Despite Theft Claim

As the situation surrounding Crypsy continues to unfold, we saw the company post a blog entry stating that the majority of the funds within the company were stolen over a year ago and that that company has been insolvent for quite some time for a variety of reasons, one mainly being the theft of 13,000 BTC and 300,000 LTC. This announcement was coincidentally made just a day after Cryptsy was informed that a class-action lawsuit was being filed against them. So now what? Currently, Cryptsy seems to be in too big of a financial hole to dig itself out no matter what happens and is....

Cryptsy Lawsuit: Ann Nettles Enters into a Settlement

One of the defendants in the class action lawsuit against Cryptsy cryptocurrency exchange, Lorie Ann Nettles enters into a settlement agreement involving liquidation of almost all of her assets. There have been few new developments in the ongoing class action lawsuit against the now defunct cryptocurrency exchange, Cryptsy. The Bitcoin exchange based out of Florida stopped its operations earlier this year. At the time of shutting down, the platform allegedly had accommodated liabilities of over $10 million, of which $5 million belonged to the customers. The class action lawsuit was filed....

Cryptocurrency Exchange Cryptsy and Owner Paul Vernon Face Lawsuit

Skye Bonnow is an altcoin trader that had 140 BTC swiped from his Cryptsy account in January of 2014. Skye maintains that he adhered to Cryptsy's Terms and Conditions and was still utterly defrauded of his bitcoins. The lawsuit is currently seeking the maximum damages for the lost coins: treble the amount of the current usd value, or $180,000. Skye is using Silver Law Group to bring his claims against Paul Vernon and Cryptsy, who operate as PROJECT INVESTORS, INC. Also read: Cryptsy in Disarray. The Cryptsy Hack. Earlier this year, certain users started to notice that they could withdraw....

Coinbase Faces Class Action Lawsuit From Cryptsy’s Victims

Coinbase faces a class action lawsuit against its involvement in the Cryptsy fiasco. Read more... Coinbase is courting one trouble after another. Following the latest issue with the IRS, the cryptocurrency company has another legal challenge to face. This time, it is a class action lawsuit by Silver Law Group and Wites & Kapetan regarding the platform’s alleged involvement in $8 Million theft by Cryptsy’s promoter Paul Vernon. The nationwide class action lawsuit against Coinbase has been filed in the United States District Court for the Southern District of Florida. According to....