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Coinbase Agrees to Settle Year-Old Cryptsy Case at one Million Dollar

The announcement was made by the plaintiff’s lawyer, stating that 11,325 BTC have been settled on Monday

Coinbase crypto exchange finally put an end to a yearlong lawsuit by agreeing to pay one million dollars. Essentially, Coinbase will pay the agreed amount to former customers of the now-defunct crypto exchange, Cryptsy.

Coinbase To Pay $962,500 to Cryptsy Victims

It was reported recently that the court document dated November 27, and December 10, 2019 details that the largest crypto exchange, Coinbase will hand over $962,500 to an escrow agent heading the case against Cryptsy. The announcement was made by the plaintiff’s lawyer, stating that 11,325 BTC have been settled on Monday. More so, the plaintiffs shared a webpage for potential victims of Cryptsy, those who were using this trading platform before 2015. The webpage details key dates and proper procedures to submit claims.

It’s worth noting that the settlement acted as an end to a three-year legal action that almost had to have Jury trial, a lawful proceeding wherein a jury makes a decision.

The filing further notes that the hearing for the same case will be held on April 17 this year to further proceed whether to approve the preliminary settlement agreement or make further modifications.

Case in Brief

Moreover, the effort of the class representative, Brandon Leidel will be paid off. Accordingly, he will receive $2500 for his time and effort contributed towards Crypsy’s case. Noticeably, Leidel began the case 2016, alleging the fraud effort processed by CEO Paul Vernon.

According to Leidel, Cryptsy CEO Launder millions of dollar’s worth of his clientele fund. However, the exchange claimed insolvency in early 2016 which was followed by a supposedly hack incident of around 13000 bitcoin and 300,000 litecoin.

Following the hacking incident, victims censured Cryptsy Founder Paul Vernon over his alleged negligence. Later it was reported that the suffered users alleged that the hack was in fact not hack itself, rather it was stolen by Vernon and laundered through Coinbase. Consequently, in late 2016 Crypsy victims filed a case, accusing Coinbase of backing up Cryptsy founder of around $8.2 million worth of cryptocurrency.

Nevertheless, in late 2019, Coinbase came forth agreeing to pay Cryptsy victims $952,500 in the settlement, encouraging the case to end up. This being said the latest report reveals that the settlement will either be approved or have modification during a hearing scheduled on April 17, 2020.

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