Crypto

Coinbase sued by customer over life savings being lost in hack

Published

4 weeks ago

March 8, 2023

ticker NEWS

The plaintiff argues the crypto exchange violated state laws

Coinbase is being sued by a customer, who argues the exchange refused to help him.

The customer lost $96,000 from his wallet due to hack.

Jared Ferguson, lost “90% of his life savings” after his phone was hacked, the court filing said.

Ferguson lost service on May 9 and T-Mobile technical support told him to get a new SIM card.

After restoring service to his iPhone, Ferguson noticed that all the money had been taken from his Coinbase wallet.

He immediately contacted Coinbase, which asked him for information about the security of his device, the last authorised transaction and a list of unauthorised transactions.

Just over two weeks later, he was told Coinbase could not help him.

“Customers … are responsible for any activity that occurs when those devices or passwords are compromised,” Coinbase told Ferguson in an email, according to the court filing. It added, “Please note you are solely responsible for the security of your email, your passwords, your 2FA codes and your devices.”

Now, Ferguson has brought claims against Coinbase alleging the crypto exchange violated state laws by not crediting his account in full for his losses.

Ferguson alleges that Coinbase violated the Electronic Fund Transfer Act.

Crypto

Sam Bankman-Fried accused of conspiring to bribe Chinese officials

Published

5 days ago

March 29, 2023

ticker NEWS

The charge is added to his list of indictments since the collapse of FTX

The founder of now bankrupt crypto exchange FTX was accused by Manhattan federal prosecutors on Tuesday of conspiring to bribe Chinese government officials with $40 million worth of payments.

The new charge adds pressure on the 31-year-old former billionaire, who now faces a 13-count indictment over the November collapse of FTX.

Prosecutors had previously accused Bankman-Fried of stealing billions of dollars in customer funds to plug losses at his Alameda Research hedge fund, and orchestrating an illegal campaign donation scheme to buy influence in Washington.

He has pleaded not guilty to eight of the 12 prior counts he faces.

The latest indictment accuses Bankman-Fried of ordering a $40 million cryptocurrency payment to a private wallet from Alameda’s main trading account, to persuade Chinese authorities to unfreeze Alameda accounts with more than $1 billion of cryptocurrency.

A spokesman for Bankman-Fried declined to comment. China’s foreign ministry could not immediately be reached for comment after business hours in Beijing. The Chinese embassy in Washington, D.C. did not immediately respond to a request for comment.

Bankman-Fried – who has been confined to his parents’ Palo Alto, California, home ahead of his October trial – is expected to be arraigned Thursday on the latest charge.

The judge on Tuesday also approved modifications to Bankman-Fried’s $250 million bail package, which include the use of a cell phone without internet connection and a laptop with limited functions.

Crypto

Celebrities busted over illegal crypto scheme

Published

1 week ago

March 24, 2023

ticker NEWS

Agreements have been settled without admitting guilt

Eight celebrities have been busted over allegations they’ve been participating in an illegal crypto scheme.

The stars, including Lindsay Lohan, Logan Paul and Soulja Boy, were all charged following an investigation by the U.S. Securities and Exchange Commission.

Lohan and Paul have reportedly settled the matter without admitting guilt.

But, regardless, it’s just another bad look for the already embattled crypto industry.