Coinbase has agreed to pay $962,500 to resolve claims that they aided and abetted the theft of Cryptsy cryptocurrency.

The settlement benefits Cryptsy account owners who held Bitcoin and other cryptocurrencies with the company as of Nov. 1, 2015, and who are unable to access their currencies.

The plaintiffs filed their Cryptsy Coinbase class action lawsuit in December 2016, alleging that Cryptsy stole cryptocurrency from their account holders. The plaintiffs also claimed that Coinbase contributed to the theft of cryptocurrencies.

According to the plaintiffs, Cryptsy founder Paul Vernon stole cryptocurrency from account holders, closed Cryptsy, moved to China, and refused to return the currency to its rightful owners.

Coinbase was accused of aiding and abetting Vernon’s scheme by allowing them to have accounts on their platform. Through these accounts, Vernon was allegedly allowed to convert bitcoin to U.S. dollars.







Although Vernon has reportedly refused to cooperate with this case against his company, Coinbase has agreed to a settlement to resolve the claims against them. The company has not admitted any wrongdoing but will pay $926,500 into a settlement fund.

Payments under the Crypsty Coinbase settlement will vary depending on the number of claims filed with the settlement. However, Class Members have the potential to recover up to 100 percent of their unreimbursed losses or damages.

In order to benefit form the settlement, Class Members must submit a valid claim form by April 13, 2020. The deadline for exclusion and objection is March 13, 2020. The final approval hearing for the Cryptsy Coinbase settlement is scheduled for April 17, 2020.

Consumers who received a payment from the previous Crypsty class action settlement do not have to file a claim. Instead, they will automatically have their claim reviewed and paid using the same submitted information.