A U.S. federal court has ruled that law firm Silver Miller’s money laundering-related class action lawsuit against crypto exchange and wallet Coinbase must be held in open court as opposed to a private arbitration boardroom, Silver Miller attorney David Silver told Cointelegraph in an email today, April 23.
The Eleventh Circuit Court of Appeals ruled today that the class action against Coinbase, brought by Silver Miller and co-counsel the Wites Law Firm, will be held in open court. The case in question alleges that Coinbase assisted in laundering around $8.2 mln of stolen Bitcoin (BTC) – valued at over $100 mln today. In July, 2017, the CEO of the now bankrupt crypto exchange Cryptsy, Paul Vernon, had been found guilty of stealing his users’ cryptocurrency and as ordered to pay $8.2 mln in damages, a case Silver Miller law firm was also involved in.
As Vernon used his Coinbase account to convert the stolen funds into fiat between 2014 and 2016 before fleeing the country, the current Silver Miller class action lawsuit against Coinbase alleges negligence in account oversight:
“Plaintiffs seek damages based upon the unlawful conduct of COINBASE in failing to properly monitor customer accounts that held investors’ money and ignoring its duty to investigate suspicious activities under U.S. anti-money laundering rules.”
Silver Miller co-founder David Silver, who was part of the original Cryptsy lawsuit, told Cointelegraph that he has long “preached that accountability, transparency, and verification are needed in the crypto exchange space”: […]