Victims Claim Coinbase Didn't Protect Them From $21 Million Crypto Scam by cfarivar
This illustration photo shows the Coinbase logo in the background as a person checks cryptocurrencies prizes on a smartphone in Los Angeles on April 13, 2021.against the famed cryptocurrency exchange, alleging that the company didn’t adequately protect them from scammers.
“It has [nearly] 100 victims, all people who have lost a significant amount of money and have been damaged by what happened, that’s what makes this pretty unique,” he toldAlleged individual losses range from roughly $35,000 worth of the cryptocurrency known as USDT, or Tether, to over $662,000. If an arbitrator, a type of private judge, finds in the victims’ favor, they would be owed back the value of their losses with interest, plus attorneys’ fees.
However, unlike Coinbase’s conventional hosted wallets, where Coinbase effectively acts as a bank to securely hold assets, this type of wallet allows people to hold their own private cryptographic keys, which can be used to initiate a broad array of more modern cryptographic transactions. Each victim was approached out of the blue by someone online with whom they struck up a relationship. Over time, the scammer turned those conversations towards cryptocurrency, and discussions about decentralized finance. The victims were then convinced to purchase a “voucher,” participating in what they were told was a cryptocurrency lending pool, whose terms are defined in a “smart contract,” a piece of computer code that automatically determines who gets paid when.
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