Crypto Exchange Coinbase Hit with Lawsuit by Customer Claiming The Company Failed to Reimburse Stolen Funds

News | May 29, 2024 By:

On Thursday, May 16, 2024, Keith Peek filed a federal lawsuit against cryptocurrency exchange Coinbase Inc. in the United States District Court for the Eastern District of California.

In the complaint, Peek alleged that he had been the victim of fraudulent electronic funds transfers totaling $17,556.45 from his personal checking account to his Coinbase account throughout November 2023. Peek, a resident of Gainesville, Georgia, claims that he notified Coinbase promptly about the fraudulent activity and provided both a fraud affidavit and an identity theft report from the Federal Trade Commission.

However, despite Peek’s attempts to resolve the matter, the lawsuit states that Coinbase failed to restore his account to its previous balance before the fraudulent transfers occurred. The complaint accuses Coinbase of violating the Electronic Fund Transfer Act, which requires financial institutions to investigate reports of unauthorized electronic fund transfers that are promptly reported by consumers.

Under the Act, consumers must notify their financial institution about any unauthorized transfers within 60 days. Peek argues in the lawsuit that he met all of the legal requirements under the Act by notifying Coinbase about the compromised account, providing the documentation requested, and reporting the fraudulent transactions within the required timeframe.

Peek, representing himself in the case without an attorney, is seeking monetary damages of $17,556.45 to be paid by Coinbase, as well as court costs. He claims to have exhausted all administrative options to resolve the matter directly with Coinbase. The lawsuit alleges Coinbase was grossly negligent in its handling of Peek’s report by failing to restore his account balance.

Please contact BlockTribune for access to a copy of this filing.