Crypto Scam Victims File Arbitration Demand Against Coinbase

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Crypto Scam Victims File Arbitration Demand Against Coinbase
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Case could have serious implications for other crypto companies as well

that aim to trick users into sending their crypto elsewhere by promising high returns. The sophisticated fraud scheme, which was discovered earlier this year, takes a different approach by stealing money right from their wallets.

Fraudsters hunt for potential victims on social media and dating apps and offer them to participate in a questionable"liquidity mining" program. However, in order to participate in the program, users had to buy a mining certificate for a few dollars. Hundreds of victims were tricked into clicking malicious links to the purported certificate that actually gave scammers unfettered access to their wallets.

Reuters predicts that the case will have wideranging implications for the industry if arbitrators end up siding with the plaintiffs.

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