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Coinbase is arguing in the Supreme Court to put an automatic stay on its legal cases, citing the arbitration clause in the user agreement.
The disputes around cryptocurrency have reached the Supreme court, and COINBASE is pushing for an automatic stay in the case. Coinbase filed to halt the case last August.
oral argument on Tuesday, the American exchange claimed that the arbitration clause, which falls under the Federal Arbitration Act, was a part of its user agreement.
The case could set a precedent for future disputes between cryptocurrency exchanges and their customers. The Supreme Court’s decision is expected by the end of June.
U.S. Supreme Court divided over Coinbase arbitration dispute https://t.co/5Hc6hxl7ZHpic.twitter.com/gtl7oR9yXE
— Reuters (@Reuters) March 21, 2023
Coinbase Seeking to Halt Two Cases
The arbitration clause requires the settlement of disputes between a user and the business through a third party without involving the court.
The cryptocurrency exchange is appealing to halt two cases, Coinbase vs. Bielski and Suski vs. Coinbase.
Hackers stole $30,000 from Coinbase customer Abraham Bielski’s account in 2021. Hence, the customer accuses the company of violating the Electronics Fund Transfer act by not investigating the matter and making his deposits whole.
In another case, David Suski and other customers filed lawsuits against the exchange for violating California’s false advertising law. The customers claim that the exchange duped them into participating in Coinbase’s Dogecoin Sweepstake in 2021.
Quick Resolution
Hassan Zavareei, the attorney representing Bielski, believes the case should not be delayed, considering the recent collapse of cryptocurrency exchanges.
He says, “Look at this case, where Coinbase, the entire cryptocurrency market is collapsing under our feet, and other interchanges, competitors with Coinbase are going bankrupt left and right, and we’ve got a client who lost $30,000, and we’re getting calls from other clients who have lost hundreds of thousands of dollars, in the meantime, you know, wondering whether Coinbase is going to be around.”
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