New York user sues Coinbase for denying responsibility for stolen funds

According to Bloomberg, Jared Ferguson, a Coinbase account holder in New York, filed a lawsuit against Coinbase, saying that $96,000 of his encrypted assets on Coinbase were stolen, and Coinbase refused to be responsible for the losses caused by the security breach. In May 2022 Jared Ferguson received a text message from his carrier describing a request for a SIM card replacement, which he did not do himself. He didn't know funds had been stolen from his Coinbase account until he restored service to his iPhone the next day with a new card. He said Coinbase was liable under state and federal law for unauthorized withdrawals, but the company declined to compensate him, saying in an email that the security of passwords and two-factor authentication codes is the responsibility of users. Jared Ferguson claimed that Coinbase's security procedures failed to flag and retain "clearly fraudulent and unauthorized transactions." His account was emptied from a new device in less than eight hours. After he reset his password, His account was wiped from an IP address that had not previously been associated with his account.