Topic: Class action lawsuit against Coinbase, inc (Read 7232 times)

Well, it wasn't a big problem because they're only tying up $80.  Maybe that's the problem, that they don't want to be bothered, they can't make much profit from it.  Yet a $1 test went right through.  I thought all this stuff was automated anyway, it should be pretty routine.

I filed cases with the Securities and Exchange Commission and Consumer Financial Protection Bureau, this is my description I filed: 

I don't so much mind them being a little late now and then but $80 is half a month's food money, it would buy 2 Raspberry Pi computers.  I'm trying to downscale and live on nothing, mostly big bags of rice.

Thats bad thing about coinbase. But I don't understand what problems you have got with it. I have been using coinbase still long period of time and Im still using it. Im not resident of US but it is still best option for my country. Im having no trouble doing transaction via this company wallet. Most of the payment I get from bitcointalk are coming to coinbase only. The transaction smooth for me. I also trade large volume of money through it to send to my family and friends wallet. You would rather check twice if there is any technical problem with coinbase for your region. Well thats too broad like I am saying in your "region"because wallets are not that sophisticated. You went crazy with las suits and all the things. But may be you are right at your own place as you are facing big problems with it. All the best to you.

They've been at this for 4 years now?  How?

Thats a matter of opinion actually. There have been several cases where companies have tried to cover their asses in a similar manner, only to have their terms of service torn to shreds in court. I'd wager that Coinbase's latest amendment doesn't hold up in court when the context is shown as to how that terms of service amendment came about, and how they got users to accept it through a threat of withholding access to user accounts.

Well, I was on the list, but if its on the TOS then there is nothing you can do about it.

Look ok, I had no other choice.... I was supposed to get 15 bitcoins at around $150 a piece.... for weeks they didnt reply as bitcoin value rose to 500+ ....  and I had thought they would re initiate the transaction since Olaf kept saying in the forums "we will fix it for you" "we will fix it for you"  "we regularly re initiate the transactions" etc etc.  I couldn't touch the money because I thought they were going to re initiate it.  so i couldn't even buy any bitcoins.

I explained everything to my bank and they took action.

Were you on the list of leaked email/usernames? it was only a handful of users about 1300 in total. I realize this could possibly make me look like a liar since according to you, a user not on the list you never were prompted to agree to the amended terms of service, but i am not lying. check the terms of service, you will see they added the new section about not participating in a class action lawsuit. They removed the vulnerability finally, but not until refusing to pay the hacker who found it and refusing to fix it, leading to them having their asses handed to them by said hacker occuring on or near "April Fools Day".

I never had to press a button saying "I agree".

Email support one more time, and quote their reply.

P.S. Dont yell at them.

The only thing i would like to sue them for is for the vulnerability in their system that led to my email address and legal name being discovered with hundreds of others and posted on pastebin, occuring on April the first of this year.

Unfortunately, they resorted to making your account inaccessible shortly there after unless you clicked "I agree" on a legal document saying you agreed to never participate in a class action lawsuit against them.

Anyone with half a brain realizes that this is extortion, and you can still sue the pants off of these ahem people, but be prepared. They have much more money to spend on legal council than any of us do.

Other than this singular instance where i feel they are ultimately responsible, i treat most of these posts in this thread as the fud that they are. Coinbase has never scammed me and i highly doubt they ever scammed anyone in this thread either.

Its true that their fee's are high, however this is merely the free market since they are the last remaining US based exchange.

 Their fee's are still cheaper than Campbx's which were simply outrageous.

All in All, if they offered to compensate me for their negligence in patching the vulnerability that ultimately lead to the revealing of my name and email address, i would gladly withhold participation in any suit against them. This is america and money talks.

No they won't.  It will cost them too much. I had bought it at $150 a piece....  I already emailed them many times.  I already told my bank everything.  My bank could only help me recoup $1200 that i lost.

If you email support, they might give you the transaction at the original price!

This is bad... REAL BAD.  Coinbase has changed their stealing mechanism from calling it "high risk transaction" to "anti-fraud" now.

They used to say it is the "algorithm" that detects it.  Now they say it is just to make sure the bank account isn't stolen, THAT IS WHY THERE IS A VERIFICATION PROCESS!!!  Good thing for screenshots before they cover up everything.  Time to go to the FBI and whatever agency / journalist that will take a look at all this.  And talk to good lawyers... thank God for free consultations.

Until it happens to you.  do you know that just a handful of accounts that they steal from they can make TONS off of it?  We're not talking about $200, we're talking about hundreds of thousands of dollars can be stolen with just 1 high risk transaction during a bubble!!!!!!!!

This isn't going to end right now.  If there will be another bubble, watch, just watch.

Wow, just wow coinbase, I'm busy right now, but I'll explain later.  Seriously coinbase STOP LYING!  OLAF JUST STOP LYING.  ENOUGH OF THE LIES.  ENOUGH.  ENOUGH OF THE BROKEN PROMISES.  ENOUGH!  YOU ARE GOING TO RUIN SOMEONES LIFE WITH YOUR PRACTICES!

(To me) the most valuable thing which could come out of such an adventure would be to compel evidence about the factors which go into Coinbase's risk management procedures.  Specifically, if and what influence the U.S. Justice Department has on these decisions and through what arms of their operations.  Equally it would be interesting to know if an appeal to state secrecy of some sort is attempted in order to avoid transparency as it relates to issue.

If none of these issues play a roll in Conibase's operational tactics and the issues are demonstrated to be nothing more than a crude implementation of pilfering dimes from their low-end customer base I'd be somewhat surprised.  I would not rule out out of course, but it does not seem likely to me.

Their support team is much bigger now. Just email [email protected]

I just pm'd you.... it has been 8 months since I was ripped off by you guys, and nothing has been done about it or even a reply!

Hello, Olaf from Coinbase here.

I just saw this thread. I'm extremely sorry for the trouble people here experienced using our site! I believe some of these problems stemmed from our slow customer support during the November/December time frame. We were swamped with the 10-fold price increase. We now have a much larger team - I want to address any outstanding problems. Please let us know!

PM me or email [email protected] - I want to work out any issues anyone is encountering.

Again, I'm sorry for any problems that occurred during the price run up. Let us know what we can do.

During the rush I was trying to buy as much as I can. I faced the limits of Coinbase accounts when they are created. Since nothing was mentioned in the terms of service about having multiple accounts, I thought I open a few more accounts to execute more purchases. I provided all honest and valid information and all my accounts were level 2 verified. They cancelled all my purchases worth $76K. I contacted their support but they never reinstrated any of my transaction and told me I am fraud. I offered them to go to their office since I work in SF and give them copies of my identification, etc to proof I am a legit person. They ended up whitelisting my main account only but did not re-instate any transactions. Their Chief Compliance Office replied to me and said that I have a point that the TOS does not forbid owning multiple accounts. She called my actions fraudulent although did sympathize with my loss and said they are anti-money-laundering policies they have to follow. I work in the financial industry so I knew about AML. I forwarded her an AML checklist which is produced by largest auditor of financial companies Price Waterhouse Coopers. Basically, all the AML bullshit they have to follow boils down to properly reporting large transaction > $1000/day to Financial Crimes Enforcement Network (FinCen). This is something that can be easily automated and I know banks do it as well. They never argues back although all my points were logical. Olaf replied to me and said they cannot share their algorithm with public because fraudsters will take advantage of it. This was the last reply to my question as to why they call my actions fraud.

I eventually took it easy on them and did not file for arbitration as they are a Silicon Valley company and are trying to help bring bitcoin to mainstream. When they got $25M in funding, I was happy for them too. However today....

Today, I am fucking mad. I tried to login on one of those accounts that I had created and I noticed, it no longer exists. It included information about all those cancelled transaction they fucked up. I tried another account and the same. My accounts, except the primary one which I use now were deleted without any notice. This is an awful practice. It shows that they tried to delete information which could be used against them. Luckily I had a backup of all the transaction and I kept all the emails and old TOS.

If you are going to participate in a lawsuit, I am in.