Coinbase continues to suffer from a number of challenges as users become frustrated with the platform.
Major Outage
After Coinbase was called out for its customer service line being a “joke,” investors were unable to trade for more than 90 minutes on Wednesday during market hours.
Although Coinbase attempted to calm investors with immediate Twitter updates, investors were largely unhappy. This is the second major outage this year, with the first outage occurring in May when traffic overflowed the company’s servers.
Coinbase has suffered from a number of outages in its history, most notably those occurring in 2017. The company attributed these major outages to “technical problems” that prevented users from trading for a substantial period of time.
The Magnitude of Outages
Outages can be disastrous for investors. Day traders and investors have specific strategies that are often executed based on price movements at a given time. The inability to execute such strategies could make-or-break a particular trader that is looking to time their trade perfectly in order to maximize returns.
When Robinhood suffered a major outage last year, traders were unable to act for nearly two days. This caused a number of traders and investors to lose money that they claim would not have been lost if they were able to trade.
While losses like this may be difficult to prove, it still begs the question whether trading platforms have liability in an outage. If investors are unable to execute trades due to a platform’s actions, investors may be able to assert legal claims against them.
Investigation
Vernon Litigation Group is currently investigating Coinbase, Robinhood, and other similar trading platforms for their actions in preventing users from trading. Our firm is speaking with investors and traders who have potential claims against these platforms.
If you have a claim against Coinbase, Robinhood, or another stock or crypto trading platform, please contact us for a confidential, no-cost consultation. Call us at 239-319-4434 or complete this contact form today.