Freedman Normand Friedland LLP, formerly Roche Freedman LLP is a law firm specializing in complex, high-stakes legal disputes. In the following article, the key points of the Coinbase scam lawsuit are discussed.
As cryptocurrencies and e-finance have become mainstays of the Internet, so too has fraud within these industries. Just last fall, thousands of unsuspecting people were targeted an exploited through a blatant gap in Coinbase Wallet’s security protocols. The hacker or group responsible encouraged members to download and register with the app before offering them a “voucher” for free cryptocurrency.
The voucher, which was in fact a smart contract, granted the hackers complete access to the users’ accounts and with that, they were able to drain their wallets and funds. Freedman Normand Friedland LLP, formerly Roche Freedman LLP, a New York-based law firm, is currently representing some of the casualties of this Coinbase hack and, in addition to seeking compensation for their clients, the firm is also working to bring the perpetrators to justice.
Coinbase Was Aware of the Security Flaw but Made No Effort to Fix It
At the time of the hack, the Coinbase team was aware of the gap in security that allowed hackers to gain access to user accounts but made no effort to fix it. This is according to a class action lawsuit that was filed against the company last week. The lawsuit, which was filed by Freedman Normand Friedland LLP, formerly Roche Freedman LLP on behalf of 100 plaintiffs, seeks to hold the company accountable for its negligence and lack of security measures.
According to the filing, Coinbase was aware of the security flaw for months before the hack took place but made no effort to fix it. In addition, the lawsuit alleges that Coinbase made false and misleading statements about the security of its platform. For example, Coinbase claimed that its platform was “built on the most secure foundation available” and that it used “bank-level security measures.”
The lawsuit also alleges that Coinbase failed to take basic security precautions, such as implementing two-factor authentication. Freedman Normand Friedland LLP, formerly Roche Freedman LLP claims that had Coinbase implemented two-factor authentication, the hack could have been prevented and hundreds, if not thousands of people wouldn’t have had their funds and personal data stolen.
Coinbase’s Response to the Lawsuit
Almost immediately after Freedman Normand Friedland LLP, formerly Roche Freedman filed its lawsuit, Coinbase quickly altered its user statements, warning its customers whenever an entity seeks to withdraw a large sum of money from an account. To many, this sounds like an admission of guilt on Coinbase’s part, but the company line has remained that these changes were made “in the interest of transparency.”
Freedman Normand Friedland LLP, formerly Roche Freedman LLP and their team are currently in the process of deposing various Coinbase employees but so far, the company has been tight-lipped about the hack. In a statement to CNBC, a Coinbase spokesperson said:
“Coinbase is committed to protecting customers from fraud and other crimes and has invested significant resources in protecting users against scams”. The spokesperson then went on to explain that any activities carried out on the platform, from managing individual wallet’s security keys to accessing individual wallet’s contents, are designed to be exclusively under the customer’s control, not Coinbase’s control.
Victims Recounted Robotic Customer Service Loops
Despite Coinbase’s cheery denial of responsibility, victims of the attack have recounted how the company largely washed its hands of them as soon as they tried to contact customer support. Rather than being treated with empathy or offered any help, they were met with automated customer service responses and loops that left them feeling frustrated and helpless.
According to some accounts, the robotic responses seemed almost pre-programmed to deny any wrongdoing on Coinbase’s behalf and, instead, insisted that the users had compromised their own data. Freedman Normand Friedland LLP, formerly Roche Freedman LLP insists that, had the company acted quickly to inform users about the attack rather than denying and shifting blame, many of the breaches could have been avoided.
By the time the company had worked to resolve the issue, more than 3,000 account holders had been targeted, costing an estimated $50 million in damages.
The Results of the Lawsuit Remain Uncertain
For the time being, the lawsuit is still in its early stages and it’s unclear what the outcome will be. Coinbase has already taken steps to improve its security measures but, for many of the victims, this is too little too late. The lawsuit initiated by Freedman Normand Friedland LLP, formerly Roche Freedman LLP is currently seeking class-action status and, if it’s successful, could result in Coinbase having to pay out millions of dollars in damages.
