Share this article
Coinbase Appeals Decision in Cryptsy Collapse Lawsuit
Coinbase is appealing a court decision from earlier this month in a lawsuit filed on behalf of customers of Cryptsy.
By Stan Higgins
Updated Sep 11, 2021, 1:28 p.m. Published Jun 22, 2017, 4:35 p.m.
Coinbase is appealing a court decision from earlier this month in a lawsuit filed on behalf of customers of the now-defunct cryptocurrency exchange Cryptsy.
As CoinDesk previously reported, former customers of Cryptsy have alleged that the exchange and its CEO, Paul Vernon, used Coinbase – which operates a regulated wallet service as well as a digital currency exchange – to launder and steal millions of dollars worth of user funds over a several-year period. Coinbase, those customers argued in a lawsuit filed in December, should have scrutinized the fund movements more closely.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The startup countered that those users were bound by agreements signed by Vernon and Cryptsy, and sought to resolve the dispute in arbitration. On 1st June, US District Judge Kenneth Marra shot down that request, arguing that Cryptsy's customers weren't bound by those terms of services.
Court documents show that, on 13th June, Coinbase asked the US Circuit Court of Appeals for the Eleventh Circuit to overturn that decision. A representative for the startup declined to comment when reached.
In an email, attorney David Silver, who represents the plaintiffs, said that he expects the appellate court to uphold the judge's decision.
"We're confident the 11th Circuit will agree with Judge Marra, and Coinbase will be held accountable for the role it played in the theft and laundering of Cryptsy clients' assets. Coinbase had a fiduciary duty to know its customers and report suspicious transactions," he said.
collapsed in early 2015 following months of growing complaints about fund withdrawals. The site was taken offline amid claims of theft and insolvency, though Vernon has denied that he stole millions of dollars worth of user funds.
A class-action lawsuit against Cryptsy and Vernon was filed within days of the exchange's collapse, though the CEO, who is believed to be in China, has not responded in court to the allegations.
Image via Shutterstock
Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Coinbase.
Más para ti
Lo que debes saber:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
Más para ti
DOT Sinks 2% After Breaking Key Support
The Polkadot token erased earlier gains amid elevated volume, falling from a high of $2.09 to $1.97.
Lo que debes saber:
- DOT collapsed through ascending trendline support around the $2.05 level on a massive 284% volume surge.
- The token broke decisively below the support level to trade 2% lower over the last 24 hours.
Top Stories
