Coinbase Must Face Negligence Suit Over Bitcoin Cash Launch, Judge Rules

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Coinbase must face a negligence lawsuit from customers who bought bitcoin cash (BCH) following its allegedly botched listing on the exchange during the 2017 bull market, a judge has ruled.U.S. District Judge Vince Chhabaria of the Northern District of California dismissed the plaintiffs’ fraud and unfair competition claims against Coinbase, and the negligence claims brought by the ones who sold BCH. But he denied Coinbase’s motions to move the case to arbitration and to dismiss the buyers’ negligence claims, saying it is “plausible” that the company “breached its duty to maintain a functional market.”“For starters, the fact that Coinbase halted trading within three minutes of the launch is indicative of dysfunction,” Chhabria wrote in the ruling Tuesday.The case was brought last year by Jeffrey Berk, a former Coinbase user, who accused the exchange of allowing insider trading on its GDAX trading platform from Dec. 19–21, 2017, because BCH prices spiked…

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