Consumer complaint received 2024-05-17 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Other transaction problem — 
Company: Coinbase, Inc.
State: FL

Complaint narrative:
Commencing on or about XXXX XXXX, I fell victim to a multi-layered scam operation run by Hackers which involved me making deposits for a total amount of {$26000.00} USD as unauthorized transactions from my Coinbase account to Hackers wallet. 

When determining whats reasonable and fair, we should focus on the issue of liability ; common queries include, but are not limited to, the following ( i ) whether Coinbase did not take notice of any rule, law, or regulation, and/or possibly missed any material elements of the relevant bylaws or codes of conduct, that may have prevented them from protecting my financial safety ; ( ii ) whether by virtue of Coinbases custodianship over my funds or by its control over them, they owed a fiduciary duty to the me and if so, whether that duty was breached ; ( iii ) whether Coinbase promoted the transaction ( s ) in question despite being aware of the nature of the transaction ( s ) in question ( iv ) whether Coinbase was in compliance with its own policies and procedures ; ( v ) whether Coinbase owed duties to myself, what the scope of those duties was, and whether Coinbase did not uphold those duties ; ( vi ) whether Coinbase s conduct was unfair ; and ( vii ) whether Coinbase has within its power the ability to, and should, compensate me for the harm that has befallen me.

Basis For Demand The U.S. Securities and Exchange Commission ( SEC ) has found that cryptocurrencies are unregistered securit [ ies ] under the Securities Act of 1933 ( the Security Act ). It has further found that institutions that ( a ) charge transaction fees for handling customer crypto funds provide a market for buyers and sellers of crypto and ( b ) settle its customers crypto accounts, are acting as unregistered brokers under the Securities Exchange Act of 1934 ( the Exchange Act ). See Complaint, SEC v. Coinbase, Inc. and Coinbase Global, No. 1:23-cv-04738 ( S.D.N.Y. XX/XX/XXXX ). Courts have agreed with the SEC and found cryptocurrencies to constitute unregistered securities. See, e.g., XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. Pursuant to Section 78cc ( b ) of the Exchange Act, customers of transactions involving unregistered securities by an unregistered broker have a right to rescind their crypto-purchase contract.

Even if I did not have a right to rescind the purchase of the cryptocurrency, the foregoing Transactions were fraudulent, and I am therefore entitled to have the amounts set forth above returned to their account pursuant to the representations made by you. See XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation