California Court Dismisses a Case Against Coinbase

October- 25, 2018 | AtoZ Markets

U.S. District Judge Vince Chhabria, from the Northern District of California, has dismissed a lawsuit against Coinbase, which was filed by Arizona resident Jeffrey Berk in March.

The lawsuit accused the exchange of allowing insiders to trade bitcoin cash prior to its listing on the exchange, as per the news.

“Unsurprisingly, those who had been tipped off [about bitcoin cash’s listing], immediately swamped Coinbase and the GDAX [sic] with buy and sell orders, thinning the liquidity but obtaining BCH at fair prices. The market effect was to unfairly drive up the price of BCH for non-insider traders once BCH came on line at the Coinbase exchange,” said Berk.

No Legal Ground in the Case

Judge Chhabria wrote in the dismissal paper that “Berk’s complaint does not sufficiently articulate the legal basis for his claims”, adding “a reader of the complaint is thus left wondering what Coinbase should have done differently, or why the rollout of bitcoin cash would have gone more smoothly had Coinbase done whatever Berk thinks is appropriate.”

Consequently, Berk and his attorneys have been given three weeks now to file an amended complaint.

In its turn, Coinbase claimed it was entitled to “compel arbitration” according to the User Agreement Berk had to agree on when he signed up for the exchange.

Against the background of the news, Cryptocurrency prices are reported to have slipped on Thursday, with Bitcoin and Ethereum dropping more than 1%.

Bitcoin dropped 1.2% to $6,507.5 by 12:40 AM ET (04:40GMT) on the Bitifinex exchange, Ethereum fell 1.8% to $203.88 and Litecoin was down 1.5% at $52.979. XRP lost 2.7% to $0.46067 on the Poloniex exchange.

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