I respectfully disagree. Coinbase has no liability in this case. They had no fiduciary obligation to swap Fx into a token that was not actively listed on their exchange. Furthermore, Coinbase was officially notified that the pause on the smart contract was a temporary measure, with would allow investors the freedom to eventually move their tokens to self custodial wallets and hold/sell/exchange the tokens as they wished. Coinbase therefore placed no restrictions on the investor to do with their tokens as they wished. The liability falls squarely on PundAI. They intentionally and willfully misinformed investors by claiming that the pause was temporary, while in reality they had no intention of lifting the pause. They were hoping to strong arm Coinbase into a swap.
As a side note, I know the general counsel of Coinbase. They are very very well insulated legally. They will drive PundAI to the ground if it means protecting their legal stance.
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You should place the focus on Coinbase here. They are the ones responsible for your son’s situation. If Coinbase had simply cooperated with the PundiAI team, your son would already have PundiAI tokens instead of being stuck with FX.
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Coinbase is unlikely to take any action on this.
Chronological Timeline FX – Coinbase
- Suspension by the FX team
• Announcement by FX team (FunctionX.io):
The team announced that they temporarily disabled the transfer function of the FX token smart contract.
“To ensure the security of the FX token, the team has temporarily disabled the transfer function of the FX token contract.”
• Impact: users could no longer send or withdraw FX. This was done as a security measure.
⸻
- Coinbase review & communication
• Coinbase carried out a routine review of all listed assets.
• During this review, they noted that the FX smart contract remained paused by the project team.
• Coinbase stated that because of this, FX no longer met their listing standards.
⸻
- Coinbase decision to delist
• Official communication by Coinbase Assets / Support (X/Twitter):
Coinbase announced that trading in Function X (FX) would be suspended.
“Trading for Function X (FX) will be suspended as the asset’s smart contract remains paused by the project team.”
• Reason: not a Coinbase technical issue, but the fact that the smart contract was disabled (no transfers possible).
⸻
- Execution of delisting
• Date: August 15, 2025, at 2:00 PM ET.
• Platforms affected: Simple Trade, Advanced Trade, Coinbase Exchange, Coinbase Prime.
• Impact for users:
• FX balances remained visible in accounts.
• No trading, deposits, or withdrawals possible as long as the contract stayed paused.
⸻
Summary
1. FX team → Paused the smart contract (no transfers possible).
2. Coinbase review → Found that FX no longer met listing standards.
3. Coinbase decision → Announced delisting of FX.
4. Delisting executed → Trading suspended as of August 15, 2025.
It was Coinbase that made the final decision and not Function FX team.
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I’m not certain what legal precedent you are basing this on.
Please refer to my post above.
You are missing basic understandings of the issue.
If transfers are “paused” by the project, tokens cannot move on-chain. Because Coinbase is a regulated U.S. exchange, it requires listed assets to remain transferable in order to meet compliance and protect investor access. When a project disables transfers, it violates that standard and almost always risks being delistment
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This is a summary of the facts I have found online. As a lawyer, you should know that arguments must be based on facts. Your son should have acted after Function FX made their announcement. When you invest in crypto, you also carry the responsibility to stay informed about your investments. If you fail to follow developments, you cannot simply complain afterwards.
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I think you should leave the legal opnions to someone else more qualified.
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I fully understand the situation, but I disagree that the blame lies solely with the Function FX team. In my view, Coinbase also carried responsibility. Instead of immediately delisting FX, it should have started conversations with the Function FX team.
I do not see any chance of a successful legal case here, but if someone wants to waste more money on it, be my guest. I also doubt the team will lose any sleep over the fact that an American citizen believes that a loud voice automatically brings justice.
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First of all, you do not know me or my background.
By the way, I haven’t seen anyone in this chat with genuine legal knowledge, only someone with a big mouth trying to impress others with things that can easily be found on the internet.
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If the project is already under investigation by regulators — confirmed in South Korea and possibly also in the United States — it’s best to be cautious about making any legal determinations at this stage. Regulatory inquiries can expand across multiple jurisdictions, and until findings are published, any conclusion would be speculative.
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Please do not mix things up. In South Korea, PundiAI was investigated in connection with the hack, and due to the lack of communication the authorities decided to delist it from all Korean exchanges. This triggered the massive sell-off of the past few days, but still does not provide a sufficient basis for any legal case.
Apart from that, nowhere else in the world is PundiAI under investigation by any regulator.
So please, stop spreading nonsense.
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In the news, the delisting in South Korea was driven by regulatory pressure, with exchanges acting to reduce their own exposure. Coinbase made a similar decision for the same reasons. As a regulated U.S. exchange, Coinbase is highly sensitive to legal and compliance risks, so freezing tokens and delisting was a risk-management step to shield itself from regulatory scrutiny and potential investor claims.
The consistent pattern here is that exchanges delisted the projects tokens to limit legal exposure — not expand it — and they have very experienced legal teams guiding those decisions.
I am not questioning their legal teams; however, this still does not provide sufficient grounds for a legal case against PundiAI. The impact on the price is undeniable, and all holders are suffering as a result. At this stage, you either accept the loss or continue to support the team in the hope of a recovery. Personally, I remain confident in PundiAI’s potential and believe that within a year it could reach price levels comparable to Solana.
Hopefully the team has learned their lesson and will be more transparent in the future. Communication should not be left to a technical person, they need to hire a professional spokesperson.
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Investors who choose; will consult with lawyers and pursue claims against whichever party they believe offers the highest chance of success and deepest pockets .
That will play out the way it does regardless of any person (you, i or anyones else) opinion on this forum whos responsible.
I agree with you. Arguments should be made based on facts, not opinions.
And I’ll make this easy for you:
FACT: PundiAI intentionally and willfully misinformed investors by claiming that the pause was temporary, while in reality they had no intention of lifting the pause. This pause prohibited Fx token holders to withdrawal their tokens off Coinbase.
OPINION: Instead of immediately delisting FX, Coinbase should have started conversations with the Function FX team.
I would love to see you use that line in court and see how far you will get.
The delisting of the Fx token off Coinbase is COMPLETELY irrelevant. What is legally RELEVANT is that Fx token holders are not able to withdrawal their tokens and sell them because the project team has permanently paused the smart contract in hopes of pressuring Coinbase into a swap.
To the individuals that blindly support PundiAI and deflect blame , you can continue to stick your head in the sand and ignore well established laws. This is about as close as you can get to a closed shut legal case against PundiAI. You will be the clowns holding worthless PundiAI tokens when the whole project is liquidated and their assets seized. Either way I don’t give a damn. We will have our day in court and hold PundiAI accountable.
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If you can keep the rest us updated on whatever updates you can share. As an investor who also lost some money; personally rooting for you to be successful.
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This is your so-called “FACT”: PundiAI intentionally and willfully misinformed investors by claiming that the pause was temporary, while in reality they had no intention of lifting the pause. This pause prohibited FX token holders from withdrawing their tokens off Coinbase.
You have zero proof for this claim!
You just talk with a big mouth. That’s all. You made a mistake and now you’re trying to get some compensation. Be an adult and take your loss instead of coming here with stories about your son. Honestly, it’s pathetic.
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What a pathetic loser you have to be to come in here and take a dump on a bunch of innocent people who are upset they lost their life savings. What mistake did we make? Trusting a company that they were telling the truth when they said “We will begin to unfreeze PUNDIAI on Ethereum in the coming days.” on July 14th?
Who in the world would ever have bought FX after July 14th if they knew that the contract was permanently frozen? Not a single person. That’s why they didn’t tell us.
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Hahaha cry baby. On February 25th the team clearly announced the swap from FX to PundiAI. The fact that you never paid attention to the official announcements is not the fault of the project – it’s entirely your own. You can scream as loud as you want, but you will never win a legal case. From the way it looks, you actually enjoy losing money!!
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