Crypto News

Coinbase to face public trial against Silver Miller

David Silver, an attorney at Silver Miller, announced that his client’s money laundering-related class action lawsuit against Coinbase would possibly be held as a public trial instead of a private arbitration boardroom.

The class action against Coinbase filed by Silver Miller and co-counsel the Wites Law Firm will be organized in an open court, stated The Eleventh Circuit Court of Appeals. Coinbase is charged with laundering $8.2 million of stolen bitcoin BTC which values more than $100 million.

Similarly, Paul Vernon, CEO of the now bankrupt crypto exchange Cryptsy was found guilty of duping his clients and was ordered to reimburse $8.2 million as damages. The case also included the Silver Miller law firm.

Vernon was accused of using his Coinbase account to convert the stolen digital currencies into traditional money in between 2014 to 2016 before escaping from the country. Coinbase is charged with negligence in account oversight in the current Silver Miller class action lawsuit.

It reads, “Plaintiffs seek damages based upon the unlawful conduct of COINBASE in failing to properly monitor customer accounts that held investors’ money and ignoring its duty to investigate suspicious activities under U.S. anti-money laundering rules.”

David Silver, Co-founder Silver Miller, played a major role in the original Cryptsy lawsuit. He said that he has “preached that accountability, transparency, and verification are needed in the crypto exchange space.”

He added, “This ruling brings the plaintiffs one step closer to finding out just what type of Know Your Customer protocols and Anti-Money-Laundering protections Coinbase employed and whether Coinbase complied with state and federal statutes in that regard.  Coinbase has delayed and tried to keep discovery hidden from the public long enough. That stops now.”

Miller seemed merry with the fact that the case is being conducted as a public trial. He claimed, “Coinbase’s ascension to the top of the crypto exchange heap has not come without missteps in its business practices along the way.  We look forward to having Coinbase answer for its role in the millions of dollars in harm suffered by our clients.”

It is not the first time Coinbase has faced trouble from its users. In March 2018, a complaint was filed that accused the exchange of taking advantage of insider trading after adding bitcoin cash BCH to its wallet and exchange services. The despised firm has currently faced heat against its decision to shun the account of WikiLeaks Shop, the official merchandise subsidiary of WikiLeaks organization.

Since then WikiLeaks has carried out requests to boycott Coinbase from its supporters. It wrote on its Twitter handle, “WikiLeaks will call for a global blockade of Coinbase next week as an unfit member of the crypto community. Coinbase, a large Californian bitcoin processor, responding to a concealed influence, has blocked the entirely harmless @WikiLeaksShop in a decision approved by management.”

Recent incidents have damaged the goodwill of Coinbase and investors are taking out their funds to avoid any unwanted situation created by court’s decision. Being the biggest crypto brokerage firm in the world, it can have a large impact on government regulations around the world.

About the author

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Max Middelman

Max is an international blockchain consultant. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. He is also a developer for the NetAidKit, an open-source USB-powered router that protects online privacy.