A decision for a lawsuit has been released regarding a pending case over Coinbase’s launch of Bitcoin Cash (BCH) in December of 2017. U.S. District Judge Vince Chhabria threw out most of the claims, but he ruled that buyers can move forward with a ‘negligence suit’ if they so wish.
Coinbase has seemed to be claiming victory in a recent legal decision on the addition of BCH to its platform — but it may be acting prematurely. While it is true that U.S. District Judge Vince Chhabria of San Francisco threw out most of the lawsuit, he still rejected the claim that the suit should be handled in arbitration. Now, Bitcoin Cash investors who bought the asset during this period can claim damages.
According to Chhabria, the complaint makes a plausible case that “Coinbase breached its duty to maintain a functional market.” In December of 2017, the U.S. exchange launched Bitcoin Cash trading, which caused an unprecedented pump-and-dump. Completely unannounced, the exchange was struck semi-operational for much of the day, and was also shut down after two minutes of trading due to “significant volatility.” This situation led to frustration and claims of insider trading, which Coinbase naturally denied.