Coinbase Customers Get a Refusal from Exchange for Refunds from Breach Losses

Coinbase Customers

Coinbase has just made a very concerning announcement for the customers that recently became targets of a breach.

The exchange has simply denied processing any refunds for the customers claiming it has no responsibility for doing that.

The affected in question are the ones who suffered a security breach that resulted in huge losses. The exchange has announced that it is going to take no responsibility for its losses, so no refunds will be processed.

Announcement by Coinbase

It was on March 7, when the Coinbase exchange officials made an announcement about denying refund requests from the affected customers.

The exchange has simply disowned taking any responsibility for the security breach. Following the denial, the exchange has added that it is going to honor no refund requests.

The statement has been issued by the exchange on the particular matter. The exchange has made it clear in the statement that the user who lost a tremendous amount to a hack will not be refunded at all.

It was back in 2022 when one of the account holders at Coinbase ended up losing a huge amount to a security breach. The hack cost the users a whopping $96,000.

The exchange has said that it is not going to refund Jared Ferguson, who was the victim of the $96k hack. He is currently living in New York City and has been communicated by the exchange via email.

Email by Coinbase

The exchange reportedly sent an email over to the victim of the breach on March 6, where it communicated that it was not responsible for the hack.

Therefore, the exchange has no legal obligation to refund the customer at all. The exchange has even communicated the same at the US court in their recent filing.

In the email sent to Ferguson, the executives at the exchange claimed that losing the funds to the hack was completely his fault. Therefore, the exchange cannot be held responsible if he has lost almost $100k to the hackers.

The email sent by Coinbase has made it clear that it was completely the user’s responsibility to ensure that he kept his account secure.

He had to ensure that he kept his device, 2FA codes, passwords, and email address away from third parties. However, he might have ended up breaching one of the rules and instructions.

Therefore, he ended up losing funds to the hack and now has a $96k deficit in his bank statement.

When was the Matter Raised?

It was back in May 2022 when Ferguson had taken Coinbase to the court. He claimed losses to personal information/financial information as well as financial information.

As the user did not fully comply with the account usage rules and regulations properly, he ended up getting victimized.