Bitcoin Cash Nightmare Keeps Haunting Cryptocurrency Exchange Coinbase

Libra Coin News
Wed, 08/07/2019 - 06:21
Alex Dovbnya
The judge has dismissed fraud claims against Coinbase, but the number one exchange is not out of the woods yet
Cover image via www.123rf.com
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According to Bloomberg, U.S. District Judge Vince Chhabria has ruled that Coinbase, the San Francisco-based cryptocurrency exchange, must face a negligence lawsuit for bugling the launch of Bitcoin Cash on its platform.

The ruling states that Coinbase didn’t manage to maintain a functional market due to its negligence.

The buyers can move forward

Mr. Chhabria denied the company’s motion to compel arbitration. The exchange didn’t take necessary precautions to prevent the spike in the BCH price, which hurt the buyers. 

Meanwhile, the sellers are not allowed to move forward with the suit since there was no way for the sellers to withdraw BCH at the price that was recorded prior to the halt of trading.

The motion to dismiss the negligence claims by the plaintiffs who bought Bitcoin Cash is denied, but the motion to dismiss the negligence claims by the plaintiffs who attempted to sell Bitcoin Cash is granted.

Most claims dismissed

Still, most claims that were filed against Coinbase have been dismissed, including the fraud claims. The ruling states that the plaintiffs have failed to outline ‘a coherent account of fraud’ by the company.

In December 2017, Brian Armstrong, the CEO of Coinbase, was accused of artificially pumping the price of Bitcoin Cash before the disastrous rollout to later sell BCH at inflated prices.

Coinbase was later hit with a lawsuit over allegations of insider trading.

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.