Coinbase is facing two cases in the United States Supreme Court. Former users filed a complaint stating that the exchange violated California law and that they lost over $30,000 in the cryptocurrency market.
Abraham Bielski, one of the former Coinbase exchange users, had launched a lawsuit against the crypto exchange.
In 2021, he claimed, a scammer took more than $30,000 out of his Coinbase wallet. According to the lawsuit, the platform violated the Electronic Funds Transfer Act by neglecting to investigate or refund Bielski’s account.
Former Coinbase customers have filed a lawsuit alleging that the exchange violated California law by deceptively marketing sweepstakes that offered prizes in Dogecoin.
Coinbase’s request to the Supreme Court to consider the issue of the sweepstakes halted the proceedings until the end of March. The Court also announced that a decision is due by June.
The Supreme Court found in favor of a duped Coinbase user, overturning a lower court decision that the case should be arbitrated. Coinbase challenged the ruling, arguing that the case should have been resolved through private arbitration.
The lower court gave the green light to the proposed class action lawsuit, while the Supreme Court dismissed the second case that the exchange asked to review.
Coinbase is challenging court decisions allowing lawsuits against the firm to proceed, stating that issues should be settled through private arbitration, which is a speedier and more private procedure than litigation.
Arbitration is a preferred alternative to litigation by firms because it is a faster, less expensive, and more confidential way of resolving disputes.
The Supreme Court has placed a case against Coinbase on hold until the outcome of an appeal of a lower court ruling. The Court did not consider Coinbase’s SEC-related cryptocurrency challenges. The Court did not consider Coinbase’s SEC-related cryptocurrency challenges.
The Supreme Court dismissed a complaint against Coinbase, giving the exchange a huge victory in its legal struggle. However, the war is far from over. The judgment is expected to provide Coinbase with much-needed confidence as it fights the SEC.