Lawsuit: Lax Coinbase cybersecurity led to theft of customers’ crypto

Coinbase is the subject of a class-action lawsuit alleging cybersecurity failures at the cryptocurrency exchange are to blame for customer accounts losing thousands of dollars in crypto, with the company not doing enough to prevent further thefts.

Coinbase charged significant fees to customers to safeguard their accounts, but it did not protect them from their assets being stolen, according to the lawsuit, filed in U.S. District Court for the Northern District of California on Tuesday. Coinbase holds cryptocurrency assets for customers and provides a platform through which crypto is traded.

One of those claiming harm by poor security at Coinbase was Manish Aggarwal, lead plaintiff in the lawsuit, who had $190,000 stolen out of his cryptocurrency accounts in April. The company has refused to repay Aggarwal, his attorneys at Braunhagey & Borden alleged.