Coinbase Granted One-Month Delay in Cryptsy Lawsuit Appeal

Coinbase has an extra month to file its appeal arguments in a legal dispute tied to the now-defunct cryptocurrency exchange Cryptsy.

AccessTimeIconJul 13, 2017 at 6:15 p.m. UTC
Updated Sep 11, 2021 at 1:32 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Lawyers for Coinbase have won a month-long filing delay in the digital currency startup's appeal of a decision in an ongoing lawsuit tied to the now-defunct exchange Cryptsy.

was a Florida-based cryptocurrency exchange that collapsed in late 2015 amid allegations of fraud and theft. A class action lawsuit against Cryptsy was filed soon afterward, with a judge in Florida ultimately approving the plaintiffs' bid to push the exchange into receivership.

The latest twist in that story began in December, when customers charged that Coinbase – which Cryptsy CEO Paul Vernon used to exchange bitcoin for dollars – should have known that the money he was moving was derived from user funds. The plaintiffs argued that approximately $8.3m in funds were allegedly stolen by Vernon in this manner.

In response, Coinbase sought to have the dispute resolved in private arbitration, pointing to agreements signed by Cryptsy and Vernon. But in early June, Judge Kenneth Marra shot down the startup's request to compel arbitration and stay pre-trial discovery. Less than two weeks later, Coinbase appealed the decision before the US Circuit Court of Appeals for the Eleventh Circuit.

New court documents show that Coinbase's lawyers asked for a delay ahead of a July 24 deadline for Coinbase's appellate brief – which lays out its arguments in the appeal – citing work on other cases.

That request was formally approved on July 12, advancing that deadline to August 23.

Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Coinbase.

Gavel image via Shutterstock


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.