Coinbase Sued Over Security Breach: What You Need to Know

03/07/2023 03:09 • Digital Disruptors • 87 views

On March 7, it was reported that Jared Ferguson, an account holder in New York, filed a lawsuit against Coinbase, the encryption exchange, because his $96000 encryption assets on Coinbase were stolen, and Coinbase refused to be responsible for the losses caused by the security breach.

Coinbase was prosecuted for refusing to be responsible for the theft of funds due to the security breach of one of its accounts

Cryptocurrencies have become a popular investment option for many people, but as with any investment, there are risks involved. One of the biggest risks is security, and that risk was highlighted recently with the news that a Coinbase account holder in New York has sued the exchange after his $96,000 in assets were stolen. In this article, we’ll take a closer look at what happened and what you need to know to protect your crypto investments.

The Lawsuit

On March 7, Jared Ferguson filed a lawsuit against Coinbase after his account was hacked and his assets were stolen. According to the lawsuit, Ferguson’s account was breached on three separate occasions between March 15 and April 22, 2020. The hackers were able to steal his Bitcoin, Bitcoin Cash, and Litecoin, which were worth a total of $96,000 at the time. Ferguson claims that Coinbase failed to implement adequate security measures to protect his account and did not provide sufficient warning of the breaches.

Coinbase’s Response

Coinbase has not yet publicly commented on the lawsuit, but this is not the first time the exchange has faced legal action related to security breaches. In 2019, Coinbase was hit with a class-action lawsuit after hackers were able to steal $1.3 million worth of cryptocurrency from its platform. The plaintiffs in that case alleged that Coinbase did not have adequate security measures in place to prevent the theft.

How to Protect Your Crypto Investments

The Coinbase lawsuit is a reminder that cryptocurrency investments come with risks. While it’s impossible to completely eliminate the risk of theft, there are steps you can take to reduce that risk.

Use a Hardware Wallet

One of the safest ways to store your cryptocurrency is by using a hardware wallet. These devices are similar to USB drives and store your private keys offline, making them much harder to hack. Popular hardware wallets include Ledger and Trezor.

Use Two-Factor Authentication

Two-factor authentication (2FA) can add an extra layer of security to your account. With 2FA, you will need to enter a code in addition to your username and password to access your account. This can help prevent hackers from accessing your account even if they have your login credentials.

Keep Your Software Updated

Make sure you keep your computer and mobile device software updated to the latest version. Software updates often include security patches that can help protect your device from malware and other security threats.

Only Use Reputable Exchanges

When choosing an exchange to buy and sell cryptocurrency, make sure you do your research and only use reputable exchanges. Look for exchanges that implement strict security measures, offer two-factor authentication, and have a good reputation in the crypto community.

Conclusion

The Coinbase security breach highlights the importance of taking steps to protect your cryptocurrency investments. Using a hardware wallet, enabling two-factor authentication, keeping your software updated, and using reputable exchanges are all good practices to follow. While no investment is completely risk-free, taking these steps can help reduce the risk of theft and protect your investments.

FAQs

#Q1. Is Coinbase safe to use?

A1. While Coinbase is one of the most popular exchanges, it has faced legal action related to security breaches. It’s important to do your research and only use reputable exchanges that implement strict security measures.

#Q2. What is a hardware wallet?

A2. A hardware wallet is a device that stores your private keys offline, making it much harder for hackers to access your cryptocurrency.

#Q3. What is two-factor authentication (2FA)?

A3. Two-factor authentication is a security feature that requires users to enter a code in addition to their username and password to access their account. This can help prevent hackers from accessing your account even if they have your login credentials.
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