Coinbase Faces Backlash, Legal Risk Over Bitcoin Cash

[CryptosapienZA]

Someone woke up and realised the shitcoin is worth alot of money after all. hahahaha This is some dumb shit.

http://fortune.com/2017/07/31/bitcoin-fork-coinbase/

The world's most popular digital currency exchange, Coinbase, is under fire from angry customers over its decision not to support a new version of bitcoin that could also make it vulnerable to "ruinous legal trouble," according to a prominent legal scholar.
Coinbase's headaches are tied to a breakaway faction of bitcoin miners, who are responsible both for generating new coins and for the software called blockchain that is used to record transactions. On August 1, the miners will implement a software update that will create a so-called "fork" and result in two versions of the bitcoin blockchain—and two forms of the currency as well.
The creation of the new currency means every existing bitcoin holder is entitled to an equal amount of what the breakaway miners call "Bitcoin Cash." Coinbase's decision against supporting the new version, however, means its customers will not receive this benefit.
This is significant because the new Bitcoin Cash is expected to be worth real money. As of July 31, futures markets predict a unit of the new currency will be worth hundreds of dollars.
This has led customers to post angry messages on Coinbase message boards, accusing the company of stealing their property and threatening class action lawsuits.
Such a lawsuit may not be far-fetched, according to Tim Wu, a prominent legal scholar who writes extensively about technology. In a series of tweets, he likened Coinbase's decision to a broker withholding shares from its customers.

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[BTCLovingDude]

this is complete nonsense.
coinbase never hid the fact that they are not supporting bitcoin cash and never forced anyone to hold their bitcoins there.
a very long time ago so that there is enough time for anyone to do a withdrawal, they clearly and publicly announced they will not support bitcoin cash and also they clearly said withdraw your bitcoins if you are not happy about our decisions.

i am sorry to say this but anyone who is angry now is an idiot and they should be angry at themselves.

and besides it is way too soon to start cheering about bitcoin cash price. let a couple of weeks go by then talk about its price!

[digitalgame4life]

Coinbase didnt hide it indeed, they announce it long way before, but that doesnt take away the fact that coinbase is still shitty, you couldnt deposit and withdrawal way before the fork screwing it for people who wanted to move their funds

[erikalui]

Nobody can force them to support a currency that was not even known before and whose market is unpredictable. Their team already disclosed their disapproval and what kind of legal action? It's not bonus shares from a company but a third-part wallet.

[Rising Suns]

I understand why Coinbase did what they did. I also agree that they provided fair warning to customers prior to the BTC/BCH split; however, they really put themselves in a tough situation now. It seems to me their decision would depend heavily on the price action of BCH (and possibly BTC).

If BCH is lower two weeks from now, is Coinbase "liable" for the difference? If BCH is higher two weeks from now, customers would be happy if Coinbase decided to credit their accounts with BCH, but Coinbase would have a financial disincentive to do so.

[Celsiuss]

Can't stop laughing! Legal risk? What the hell? We all knew coinbase wouldn't support bitcoin cash. Customers had plenty of time to withdraw their coins to another wallet to secure their coins. If people cannot understand that, they shouldn't be using coinbase. Also coinbase is only suitable as an exchange and not a wallet.

[CryptosapienZA]

It is absolutely ludicrous. I just don't understand the reasoning behind this potential lawsuit. According to law people, the customers might have a case. I suspect someone was listening to the propaganda and didnt do the math to see how much they will gain from BCH.

[williamuk]

this is complete nonsense.
coinbase never hid the fact that they are not supporting bitcoin cash and never forced anyone to hold their bitcoins there.
a very long time ago so that there is enough time for anyone to do a withdrawal, they clearly and publicly announced they will not support bitcoin cash and also they clearly said withdraw your bitcoins if you are not happy about our decisions.

i am sorry to say this but anyone who is angry now is an idiot and they should be angry at themselves.

and besides it is way too soon to start cheering about bitcoin cash price. let a couple of weeks go by then talk about its price!

There are many grounds for suing coinbase / GDAX. It wasn't anywhere near good enough saying at short notice that ppl could withdraw their funds.

Twas expropriation pure and simple. Cowboys.

[williamuk]

I understand why Coinbase did what they did

I doubt you do.

Coinbase is part of the Digital Currency Group, the same group Blockstream is part of. It was in their interest to undermine the credibility of Bitcoin Cash in any way they could to support their own agenda for bitcoin.

Rejecting it wholesale whatever the cost to their customers is what they chose to do. There are very good grounds for legal action.

[CryptosapienZA]

I understand why Coinbase did what they did

I doubt you do.

Coinbase is part of the Digital Currency Group, the same group Blockstream is part of. It was in their interest to undermine the credibility of Bitcoin Cash in any way they could to support their own agenda for bitcoin.

Rejecting it wholesale whatever the cost to their customers is what they chose to do. There are very good grounds for legal action.

I wonder when will people realize that Blockstream is a cancer. I suspected it might have something to do with them but I had not done any research.

[Hydrogen]

"Strongly offended by facts clearly printed on coinbase's website weeks in advance."

Sounds as if SJW's strongly support BCC.

Not certain if that's a ringing endorsement. Perhaps a sign to avoid bitcoin cash?

[cr1776]

"Strongly offended by facts clearly printed on coinbase's website weeks in advance."

Sounds as if SJW's strongly support BCC.

Not certain if that's a ringing endorsement. Perhaps a sign to avoid bitcoin cash?

Exactly.  They posted it, and sent out emails that included advice for moving coins.

However, it would be nice if they supported it as I have some BCC to sell.

[EthBooksPro]

Seems many customers ignored Coinbase' announcement to withdraw their btc from the exchange to a wallet that would support Bitcoin Cash...that is, if one was interested in BCH. A huge majority never saw the huge price increase of Bitcoin Cash coming and have just realized how much they've lost.

[silkylove]

There was plenty of time to move coins, even if you had it in the vault with the multiple day waiting period for withdrawal.

[galactica]

Unfortunate but yes people should have read notices.

[sylance]

I agree that Coinbase shouldn't be held responsible for supporting BCC since they were very early and clear on their position.  However, there is an argument to be made for those trying to get their coins out and transfers taking multiple days.  I don't believe it warrants legal action but jeez... transfers taking over a day is crazy.

[Rising Suns]

If Coinbase decides to stick with their initial decision NOT to support BCH, are they under any obligation -- legal, ethical, or otherwise -- to NOT sell the BCH in their control?

[tondiego]

Correct me if I'm wrong.

But isn't the solution for this to provide all users with their private keys, Coinbase is storing for them? So all users can use them with any other BCH wallet? These BCH coins exists and they won't disappear just because Coinbase doesn't support BCH.

[kokojie]

Correct me if I'm wrong.

But isn't the solution for this to provide all users with their private keys, Coinbase is storing for them? So all users can use them with any other BCH wallet? These BCH coins exists and they won't disappear just because Coinbase doesn't support BCH.

That's effectively allowing withdrawals, and coinbase might as well provide this function within the interface to look professional.

[giveen]

No use of a lawsuit eventually they will simply spend their money in proving coinbase guilty but at the end no matter what the decision will go in favour of coinbase. According to coinbase terms they don't force anyone to store their bitcoins and second they had informed everyone prior to this event that no bitcoin cash will be given they could have transferred to another wallet prior to this event.