Coinbase has just settled the former Cryptsy crypto exchange lawsuit and agreed to put $962,500 into an escrow agent that handled class action claims on a previous Cryptsy lawsuit.
The plaintiffs’ lawyers have announced the settlement on Monday and won 11,325 BTC in the previous case. Meanwhile, the plaintiffs created a special webpage for Cryptsy victims that got scammed before 2015. On this webpage, they explained how claims can be submitted and listed upcoming important dates for the suit. The settlement comes after 3 years of legal action that almost ended up being trialed by a jury.
A Preliminary Settlement Agreement to be Held in April
Another hearing for either approving or rejecting the preliminary settlement and making needed modifications is going to be held in April, this year. The designated class representative of the lawsuit, Brandon Leidel, will be given $2,500 for his efforts, as he was the one to bring the suit in 2016, and to say that Crypty’s CEO, Paul Vernon has done money laundering with millions from user funds.
Silver Miller and Wites Designated Class Counselors
Both Silver Miller and Wites law firms were designated as class counselors and originally filed the suit. Attorney Mark Wites said in a statement that both the Cryptsy and Coinbase cases were difficult to resolve. This are his exact words:
“When companies go out of business, founders flee the country, and the amount at issue is relatively small, most plaintiff law firms would decline to pursue the case. We were the only lawyers in the country to pursue a case against Cryptsy or Coinbase, individually or as a class action; and we were able to obtain multiple meaningful recoveries for victims who would have otherwise been left without any recourse.”
Silver Miller’s David Silber had this to comment:
“This case shows that businesses in the cryptosphere bear a large measure of responsibility, from with whom they decide to do business and with whom they choose to associate.”