The plaintiffs created a webpage for potential Cryptsy victims – any individuals who used the exchange before 2015 – listing upcoming key dates and outlining how they can submit claims.
Coinbase has settled a class action lawsuit brought by users of the former Cryptsy cryptocurrency exchange.
According to a set of court documents dated Nov. 27 and Dec. 10, 2019, Coinbase has agreed to turn $962,500 over to an escrow agent responsible for handling class action claims related to a previous lawsuit against Cryptsy. Lawyers for the plaintiffs, who announced the settlement Monday, have already won 11,325 BTC from this previous case.
The settlement concludes a three-year legal action which nearly saw a jury trial.
A hearing will be held on April 17, 2020 to either approve the preliminary settlement agreement or add further modifications as needed, according to the filing.
Brandon Leidel, designated the class representative in the class action lawsuit, will receive $2,500 due to his efforts. He brought the suit in 2016 alleging that Cryptsy CEO Paul Vernon used the exchange to launder millions of dollars’ worth of user funds over a multi-year period.
The case was originally filed by the Silver Miller law firm and Wites Law Firm, both of which were designated class counsel. In a statement, attorney Marc Wites said the case against Coinbase, as well as the previous lawsuit filed against Cryptsy, «were difficult cases» to resolve.
«When companies go out of business, founders flee the country, and the amount at issue is relatively small, most plaintiff law firms would decline to pursue the case,» he said. «We were the only lawyers in the country to pursue a case against Cryptsy or Coinbase, individually or as a class action; and we were able to obtain multiple meaningful recoveries for victims who would have otherwise been left without any recourse.»
David Silver of Silver Miller said he commended Coinbase «for stepping up and resolving» the case. The Cryptsy case shows how early exchanges, «especially unregulated exchanges like Cryptsy, shunned regulators, laws, and ultimately stole from its own clientele,» he said.
«This case shows that businesses in the cryptosphere bear a large measure of responsibility, from with whom they decide to do business and with whom they choose to associate,» he said.
Coinbase Expands Reach of Visa Card in Europe, Adds 5 New Cryptos
Coinbase has added support for five new crypto options to its Visa debit card, and also expanded availability to 10 more European nations.
The U.S.-based cryptocurrency exchange announced Thursday that holders of the card can now spend XRP, basic attention token (BAT), augur (REP), 0x (ZRX) and stellar (XLM). The new options come in addition to the currently offered bitcoin (BTC), ether (ETH), bitcoin cash (BCH) and litecoin (LTC).
Coinbase customers in Bulgaria, Croatia, Denmark, Hungary, Iceland, Liechtenstein, Norway, Poland, Romania and Sweden have now also been provided access to the card product.
Zeeshan Feroz, CEO at Coinbase UK, said in a statement:
“By more than doubling the number of assets our customers can spend on Coinbase Card, as well as introducing the card to 10 new countries, Coinbase continues to help drive crypto’s role as a utility, and not just an investment.”
The Coinbase Card was launched back in April to serve the U.K. and EU nations. Coinbase says it “instantly” converts cryptocurrency to fiat currency when customers make a transaction using the debit card.
According to the firm, the card can be used anywhere that accepts Visa, including internationally. There are fees for ATM transactions above the value of €200 – 1 percent domestically and 2 percent internationally – as well as charges for some purchase transactions, its website says.
Coinbase also provides an iOS and Android app that lets users make Visa payments on their mobile devices. The Coinbase Card is issued by Paysafe Financial Services Limited, a firm authorized by U.K. regulator, the Financial Conduct Authority.
