• Coinbase user lost $96,000 due to account draining after an SMS prompt message.
• Coinbase denied responsibility for failing to flag several unauthorized transactions.
• Crypto investor Jared Ferguson from New York filed a lawsuit against Coinbase in May 2022.
Coinbase User Loses $96,000
A Coinbase user lost $96,000 due to account draining after an SMS prompt message. The hacker drained the plaintiff’s Coinbase account 24 hours after receiving a text message prompting him to change the password. At the same time, Coinbase failed to blow the whistle on multiple unauthorized transactions during this period, leading to losses of life savings of $96,000 for the victim.
Coinbase Denies Responsibility
Coinbase sent an email to the unfortunate customer saying “please note you are solely responsible for the security of your email, your passwords, your 2FA codes and your devices”. However, Ferguson claims that his account password was changed from a different IP address and a new device while Coinbase failed to flag these transactions as suspicious. Furthermore, Coinbase refused reimbursement when another user lost $7,500 due to SIM Swap hack in 2021.
Lawsuit Filed Against CoinBase
Crypto investor Jared Ferguson filed a lawsuit against the encryption exchange Coinbase for theft of $96,000 in encrypted assets on their platform and denied responsibility for losses caused by security breach according to both Federal and State Laws. Unethical practices like this often makes Coinbase customer support target of Crypto Twitter roasting but it also took toll on its stock price which is currently at $62.77 with 2.7% decline in last 24 hours.
Base Layer-2 Blockchain Launched By CoinBase
Coinbase recently launched Base Layer-2 blockchain and Brian Armstrong intends apply transaction monitoring in compliance with regulators soon enough which could have saved users like Jared from such financial losses if implemented earlier .
Conclusion
The incident highlights how important it is for crypto investors maintain high security standards while handling digital assets on exchanges including regularly changing passwords and keeping track of all transactions made on their accounts even if they are not flagged as suspicious by exchanges themselves.