Cryptocurrency exchange Coinbase Global (COIN) has been hit with a class action lawsuit by investors who accuse the company of failing to properly secure customer accounts.
The lawsuit, filed in the U.S. District Court for the Northern District of Georgia, claims that Coinbase left investors vulnerable to theft and unauthorized transfers due to lax security protocols on its trading platform.
The complaint also accuses Coinbase of causing financial harm to users by locking them out of their accounts for long periods of time, as well as violating federal law by listing securities on its cryptocurrency trading platform.
The class action lawsuit filed in Georgia is seeking damages of more than $5 million U.S.
Coinbase, which was the first cryptocurrency exchange to go public in the U.S., faces numerous lawsuits from disgruntled investors, including another class action lawsuit that has been filed in New Jersey alleging the company allowed people to trade unregistered securities on its platform.
The Georgia lawsuit involves more than 100 people and cites a 2019 incident in which Coinbase took over six months to let a customer back into their account, a pattern the suit claims the company repeated on multiple occasions.
Coinbase stock is down 72% this year to $71.47 U.S. per share.
