A nationwide class action lawsuit has been filed against Coinbase (D.CBSE) by Silver Law Group and Wites & Kapetan, P.A. of Florida, alleging the company violated laws by allowing Cryptsy exchange operator Paul Vernon to launder stolen funds through their service.
The lawsuit states that:
Coinbase failed to satisfy its regulatory requirements or perform any reasonable investigation into the suspicious activity in Mr. Vernon’s and Cryptsy’s Coinbase accounts. Although the exact amount remains undetermined, the lawsuit estimates that the value of the digital funds laundered through Coinbase exceeds $8,200,000.00. Mr. Vernon is believed to have absconded with those funds when he abandoned Cryptsy and fled to China in late-2015.
James D. Sallah is also named as a plaintiff in the suit. Sallah was named Receiver of the remaining Cryptsy funds seized by the courts after Mr. Vernon absconded to China, and is pursuing action against individuals believed to have assisted Big Vern in his scheme. If you or a loved one suffered Sorry For Your Loss you are encouraged to contact the attorneys listed above.