• Coinbase user lost $96,000 due to an SMS prompt message and account draining.
• Coinbase denied responsibility for the loss and claims that the user is solely responsible for their security.
• The victim has filed a lawsuit against Coinbase for failing to flag unauthorized transactions, while Coinbase had previously refused to reimburse a client in a similar situation in 2021.

Coinbase User Loses $96,000

A Coinbase user lost $96,000 due to an SMS prompt message leading to account draining. Crypto investor Jared Ferguson from New York filed a lawsuit against Coinbase in May 2022 after his life savings of $96,000 went missing. The hacker drained the plaintiff’s account 24 hours after receiving the text message prompting him to change the password and Coinbase failed to flag any suspicious transactions during this period.

Coinbase Denies Responsibility & Blames User

Coinbase sent an email blaming the unfortunate customer saying they are solely responsible for their security- passwords, 2FA codes and devices. However, the plaintiff argued that his account password was changed from a different IP address and new device while Coinbase missed multiple unauthorized transactions.

Unethical Practices Take Toll on Stock Price

The unethical practice of refusing reimbursement has been criticized by Crypto Twitter but also took toll on its stock price. At press time, Coinbase Global Inc (COIN) costs $62.77 with a 2.7% decline in last 24 hours.

Base Layer-2 Blockchain & Transaction Monitoring

Coinbase recently launched Base Layer-2 blockchain while Brian Armstrong intends to apply transaction monitoring in compliance with regulators as part of this project.

Lawsuit Filed Against Coinbase for Losses

Jared Ferguson has filed a lawsuit against the encryption exchange Coinbase for theft of $96,000 worth of encrypted assets on their platform seeking compensatory damages under both Federal and State Laws as well as punitive damages arising out of fraud or gross negligence committed by defendant’s employees or agents acting within scope of employment or agency