Coinbase hack shows the law probably won’t protect you: Here’s why
There were some reports that Coinbase had updated its user agreement just before announcing the breach, with critics accusing the company of adding an arbitration clause that limits class actions. Coinbase maintains that a class action waiver has long been part of its terms
Coinbase is facing a flurry of lawsuits after disclosing a data breach that compromised nearly 70,000 customer accounts, with estimated losses reaching as high as $400 million.
The exchange says overseas customer support agents were bribed into helping scammers gain unauthorized access to user data in December. The company disclosed the attack to the public in May.
There were some reports that Coinbase had updated its user agreement just before announcing the breach, with critics accusing the company of adding an arbitration clause that limits class actions. Coinbase maintains that a class action waiver has long been part of its terms.
Charlyn Ho, founder and CEO of the law and consulting firm Rikka, says such clauses are standard in the US, where user agreements are typically enforceable. But those terms and conditions may not hold the same weight in other jurisdictions.
