Crypto markets appear to be on the brink of a major bull run. Bitcoin and Ethereum have both seen notable increases in value, with Bitcoin up 8.5% to $23,162 and Ethereum up 5% to $1655.
Despite some negative news from Coinbase and Gemini, the markets seem to be ignoring the market turbulence this week.
Coinbase Facing Legal Action Over Alleged Security Issues
A group of investors have initiated a class action lawsuit against Coinbase, claiming that the cryptocurrency exchange’s security measures were inadequate, leading to the loss of funds. They allege that Coinbase has refused to pay compensation for its victims.
One plaintiff claims that hackers illegally took $6,000 of crypto funds from his wallet and moved them to a new address, and that Coinbase failed to stop the theft of $1,000 from his account.
Gemini Finds Itself at the Center of Fraud Charges
Gemini is also in the news this week, which has caused a slowdown in the crypto market surge. A class action lawsuit has been filed against the exchange, claiming it is in violation of the Exchange Act. The Earn Program, which pays 7.4% interest to traders, is the subject of the suit.
In late December, the program stopped accepting any new investments. This coincided with the stock market crash at FTX in November, and the suspension of the newest version of the Earn Program by its founder, Sam Bankman-Fried of Alameda Research.
The company received over $10 billion from digital customers via FTX. Gemini is a partner of Genesis Global, and Max J. Hastings and Brendan Picha are the complainants in the suit. They claim that registered assets can be considered securities.
Additionally, it is claimed that Genesis owes Gemini nearly a billion dollars. On November 16, 2022, Genesis announced that repayments of loans will be delayed due to “issues with FTX” and the company is now closed and no longer available for future loans.
Bitcoin Price Update
Bitcoin is currently priced at $23,240.65, with a daily trading volume at 35 billion. It has a market capitalization of $447 billion and has increased 7% over the past 24 hours. On the daily time frame, a bullish engulfing candle has formed, indicating the uptrend may continue.
