• Coinbase user lost $96,000 due to account draining after an SMS prompt message.
• Coinbase denies responsibility for failing to flag several unauthorized transactions.
• Jared Ferguson from New York filed a lawsuit against Coinbase in May 2022.
Coinbase Refuses to Refund Lost Funds
A Coinbase user lost $96,000 due to account draining after an SMS prompt message. The hacker drained the plaintiff’s Coinbase account 24 hours after Jared Ferguson received a text message prompting him to change the password. At the same time, Coinbase failed to blow the whistle on multiple unauthorized transactions during this period and denied responsibility for the losses caused by the security breach.
Coinbase Proclaims Innocence
Coinbase sent an email to the customer claiming that they are solely responsible for their own security. However, Ferguson argues that his account password was changed from a different IP address and a new device, while Coinbase failed to flag these transactions as suspicious. Additionally, in 2021 another user lost $7,500 due to a SIM Swap hack and Coinbase refused to reimburse them for their losses as well.
Unethical Practice Takes Toll on Stock Price
Crypto Twitter is often quick to roast Coinbase customer support over similar situations like this one which took a toll on its stock price as well. At press time, Coinbase Global Inc (COIN) costs $62.77 with 2.7% decline in the last 24 hours since this incident occurred.
Base Layer-2 Blockchain Launched Along With Transaction Monitoring
Brian Armstrong intends on implementing transaction monitoring with regulators in order comply with laws and regulations through launching Base Layer-2 blockchain technology which could potentially include transaction monitoring capabilities if approved by authorities or regulators.
Lawsuit Filed Against Crypto Exchange
Jared Ferguson from New York filed a lawsuit against crypto exchange company Coinbase in May 2022 when his life savings of $96,000 were stolen due to a security breach via unauthorized transactions that were not flagged by the exchange platform itself as suspicious activities before it was too late for victim’s funds recovery process .