A US court will again consider the case of Cryptsy clients against Coinbase

The two-year legal battle resumed. The rehearing of the case of Cryptsy users against the Coinbase trading platform has reopened in Florida district court.

The notorious largest altcoin exchange Cryptsy, which declared bankruptcy in January 2016, represented by its director Paul Vernon,  was accused of laundering millions of dollars through the crypto exchange Coinbase, which, according to the plaintiffs, also participated in the theft and laundering of funds. 

Thus, the class action lawsuit filed by former Cryptsy clients was directed not only against the director himself, but also against one of the largest cryptocurrency companies. In their opinion, the Californian platform Coinbase covered the ex-head of Cryptsy, Paul Vernon, and gave him the opportunity to pass $8.3 million through the crypto exchange for several years. At the same time, the plaintiffs are confident that the company knew the origin of the funds given by the ex-head for Cryptsy profits and should have prevented the theft of user assets. 

Essentially, the lawsuit accuses the Californian platform of aiding and abetting Vernon’s criminal actions. The first lawsuit against the CEO of Cryptsy and Coinbase was filed by deceived users back in the summer of 2016. 

The company has already tried to conclude a settlement with the plaintiffs, citing the user agreement signed with Vernon. Coinbase filed its first appeal in mid-summer 2017, followed by two more, which were rejected in the same way as the first. Thus, the crypto platform tried to avoid the hearing itself and did everything possible to avoid publicity. 

However, on June 4, Florida District Court Judge Kenneth A. Marra filed a request to reopen the trial. On the eve of such a decision, representatives of the parties held a telephone conference, during which they agreed on a schedule of meetings. This reopening of the case at this stage means that the judge recognized the right of former Cryptsy clients to defend their claim against Coinbase in court, although they did not sign any client agreements with the crypto exchange.

It seems that the troubles that accompanied Cryptsy long enough before the exchange was closed and led to charges of stealing more than $8 million of client funds and destroying evidence are not yet over.