Class Action Lawsuit on Coinbase

About the Arbitration Clause: This is how they could get around it. Before engaging in a Class Action, Lead Counsel will file for arbitration on behalf of 1,000+ clients who have been harmed by Coinbase ( 1000+ is an arbitrary number. It depends on the number of Coinbase customers who want to engage in the lawsuit). It's cheaper for Coinbase to go to court or cut a deal, instead of entering arbitration with everyone individually. It would be prohibitively expensive for them arbitrate with all of them separately. However, if Coinbase truely has 10M+ customers, who all have a claim, it could also be front page news too! They made a mess that could take a long time to clean up. On that note -- How can they credibly market their new "Coinbase Custody" to institutional funds with a straight face after bungling millions of customer accounts? They should have stopped taking new customers when they realized they lacked the infrastructure to support them. As a result, they lost too much credibility and could be in real trouble in the long run.

/r/CoinBase Thread Parent