Crypto

Coinbase Avoids Cryptsy Lawsuit Going to Trial by Paying Just Under $1 Million in Damages

The Cryptsy exchange used to be one of the biggest trading platforms in the world. When it eventually met its demise – and took customers’ money – a lawsuit was filed.

The victims of this defunct exchange wanted to get their money back, which is only normal.

The end of the Cryptsy Saga, for now

In most cases, there is little to no recourse when an exchange suddenly goes dark.

During the early stages of the cryptocurrency industry, such practices were sadly rather common. 

It now appears a resolution is in sight for all of the Cryptsy victims.

Coinbase has settled the class-action lawsuit it got tangled up in.

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The major exchange is thought to have been involved in laundering some of the proceeds stolen by the Cryptsy operator in 2015.

While never officially proven, the lawsuit lingered for just over three years and was bound to head to jury trial fairly soon.

To avoid a potential PR nightmare, Coinabse will now settle the lawsuit by forking over just under $1 million to the victims. 

Funds will be moved to an escrow account and be distributed accordingly.

For the affected users, this will be more than welcome news.

It also goes to show that taking exchanges to court can have the desired outcome, as long as there is proper evidence to back up any claims.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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