Coinbase Settles Cryptsy Class-Action Lawsuit For $1 Million

Michael LaVere
  • Coinbase has settled a class-action lawsuit for one million over its role in now-defunct crypto exchange Cryptsy.
  • Coinbase was accused of laundering funds and abetting in the theft of funds following Cryptsy's 2016 hack.

Coinbase has settled a class-action lawsuit by victims of the now-shuttered crypto exchange Cryptsty for $952,500. 

After three years of legal battle, a settlement was reached between Coinbase and victims of the Cryptsy exchange hack which forced the company to file for insolvency in January 2016.

According to two court documents filed at the end of last year and reported by CoinDesk, the funds will be transferred to an escrow account and an assigned agent will be responsible for distribution to victims. 

Plaintiffs in the case previously filed charges against Cryptsy founder Paul Vernon over alleged negligence and violation of Florida’s Deceptive and Unfair Trade Practices Act after facing withdrawal issues related to the exchange’s hack, which saw approximately 10,000 BTC stolen from clients. Coinbase was later accused for being involved in laundering $8.2 million in funds and abetting in the exchange theft. 

Coinbase’s previous attempt for dismissal of the suit and settlement through arbitration was denied by the court, and the three-year-long case was nearing a jury trial. 

Featured Image Credit: Photo via Pixabay.com