June 15, 2017 / Law

Coinbase Suspected Of Laundering Funds Stolen From Cryptsy Clients

Millions of dollars stolen from users of the cryptocurrency exchange Cryptsy, could laundered through Coinbase. Such statement is contained in the collective lawsuit of the clients Cryptsy last year. According to this document Coinbase have to know about the dubious origin of $ 8.3 million. Apparently, these funds operated through Coinbase in a few years. 

Moreover, as it became known, representatives of Coinbase not only tried to reach a settlement agreement through arbitration, describing as the main reason the user agreement signed with Vernon, but also did their utmost to prevent this information from becoming public.

However, in judgement on 1 June, Florida District Court Judge, Kenneth A. Marra, denied the company its demands. He stated that users of Cryptsy have not any relation to the agreements signed by Vernon with Coinbase.

David Silver, one of the lawyers representing the interests of Cryptsy users, agreed with such arguments: “Cryptsy users that did not sign the contract with Coinbase were entitled to their day in court and be judged by a jury of their peers.” 

Recall technical and reputational problems pursued Cryptsy for quite some time. In January 2016, the exchange stopped working, after which its activities interested in US law enforcement agencies.

In August 2016, Paul Vernon was charged with stealing more than $ 3 million and destroying evidence while committing illegal actions. Then it became known that part of the funds with Cryptsy also transferred to the Bittrex exchange.

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