Lawsuit filed against Coinbase for blocking users’ access

There is an increasing number of legal cases against crypto exchange Coinbase. The exchange has been dragged to court for blocking users’ access to their accounts. In this case, it is alleged that the exchange had blocked the access of the users especially during the volatility in the market.

George Kattula, who filed this case, says that Coinbase has not even taken the necessary measures to protect users’ accounts. George has taken this step following the loss caused by not accessing his account with the exchange. He said that the exchange had blocked his access for a long period due to which he could not trade and he had to suffer. The US Securities and Exchange Commission (SEC) is investigating the listing of securities as tokens against Coinbase.

Earlier, there was also information about the SEC taking action on the exchange regarding the listing of some assets. The SEC believes that these are not securities and have been listed incorrectly. Coinbase had reported, “The SEC has asked the firm for documentation and information about certain products. These include the process of listing assets, classification of certain listed products, and yield-paying products.” Staking and yield are two ways in which many platforms allow their users to earn more from their holdings. These methods have become quite popular in the last few years. However, the scrutiny of regulators regarding these has also increased.

Recently, Coinbase decided to reduce its workforce by 18 percent due to the collapse in the crypto market. The firm, which has its headquarters in the US, said that it has taken this step to cut costs in this difficult period of the industry. The decision is expected to result in layoffs of over 1,000 employees of the exchange. Brian Armstrong, the exchange’s chief executive officer, said in a blog post, “The difficult decision has been taken to reduce our team size by approximately 18 percent. This will ensure the firm’s position during economic slowdowns.”

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