Coinbase has settled a class-action lawsuit filed by users of the former Cryptsy cryptocurrency exchange for nearly $1 million. The case has been in court for the past three years with a trial with a jury approach.
14 January, 2020 | AtoZ Markets – Coinbase has settled a class-action lawsuit filed against it by the victims of the now-defunct crypto exchange Cryptsy. According to court documents of November 27 and December 10, 2019, Coinbase has agreed to deliver $962,500 to an escrow agent.
However, the agent was responsible for handling class action claims relating to a previous lawsuit against Cryptsy. Lawyers for the plaintiffs, who announced the settlement on Monday, have already won 11,325 BTC of this prior lawsuit.
Coinbase Settles Cryptsy Victims’ Lawsuit
Brandon Leidel, a designated class representative in the class-action lawsuit, will receive $ 2,500 for his efforts. However, he filed the lawsuit in 2016. Moreover, he claimed that Cryptsy CEO Paul Vernon used the exchange to launder million-dollar user funds over many years. Coinbase also faces a class-action lawsuit over insider trading allegations in 2018.
The lawsuit was initially filed by the Silver Miller law firm and the Wites law firm, both designated as class counsel. In a statement, attorney Marc Wites said the case was against Coinbase. The previous lawsuits filed against Cryptsy, “were difficult cases” to resolve. He also said:
“When the companies go bankrupt, the founders leave the country and the amount at issue is relatively small. However, most of the plaintiffs’ law firms refuse to pursue the case. We were the only lawyers in the country to pursue a lawsuit against Cryptsy or Coinbase, individually or as a class action. We were able to achieve multiple significant recoveries for victims who otherwise would have remained without appeal.”
The plaintiffs created a web page for potential Cryptsy victims (before 2015) listing the upcoming key dates and outlining how compensation claims they can present.
Silver Miller Praised Coinbase for Stepping up and Resolving the Case
Silver Miller’s David Silver said he praised Coinbase “for coming forward and solving the case.” The Cryptsy case also shows how early exchanges, “especially unregulated ones like Cryptsy, avoided regulators, laws and ultimately stole from their customers,” he said.
“This Class Action Lawsuit shows that crypto companies have a great responsibility and with whom they choose to partner or do business ”.
The settlement concludes a three-year lawsuit that almost saw a jury trial. The hearing of the lawsuit will be held on April 17, 2020, to approve the preliminary settlement agreement or to add further changes, depending on the filing.
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