The case is reportedly being delayed by plaintiffs in a class action lawsuit against Coinbase who sustained losses as a result of unauthorized transfers of digital assets.
A recent Bloomberg Law report claims that the users who are suing the top US-based cryptocurrency exchange are delaying the legal process by withholding crucial account information.
According to Bloomberg Law, the plaintiffs have agreed to divulge the details—which include emails, usernames, and Ethereum (ETH) addresses—in exchange for a judicial protection order.
Coinbase, on the other hand, recently made it known that it disagrees with the customers' request to include a clause in the court order stating that the company will waive its right to arbitration, which is specified in its terms of service as the preferred method for resolving disputes with customers.
The corporation claims that without the account information, it is unable to properly match plaintiffs to their separate agreements and order arbitration, putting the action on hold.
It is wrong to try to weaken Coinbase's ability to demand arbitration under the Federal Arbitration Act by withholding this fundamental information.
-In a November emergency move, Coinbase declared
The initial class action lawsuit was filed in August by Coinbase user George Kattula. There, several consumers express their dissatisfaction with the bitcoin exchange's security protocols for failing to prevent fraudulent transfers of their digital assets.
Kattula brought the lawsuit on behalf of the plaintiffs. He claims that because of Coinbase's inadequate security, thieves took his digital assets worth $6,000 and moved them to untraceable wallets.
Coinbase stock hit fresh lows on December 31 as the ARK fund bought roughly 160,000 shares.
