Uphold HQ Curbs Damages But Can’t Stop Crypto Theft Class Action

Uphold HQ pursuaded a district court to trim back damages claims but otherwise failed to convince the court to dismiss a proposed class action alleging it failed to protect customers’ cryptocurrency accounts from being hacked and looted.

Zachary Nero, Jesse Smith, Gilles Boevi, and two other named plaintiffs alleged the digital money platform failed to properly implement a two-factor authentication system for their accounts, which allowed unauthorized users to drain their funds.

Judge Denise Cote of the US District Court for the Southern District of New York rejected Uphold’s argument that that the Electronic Funds Transfer Act didn’t apply to ...