U.S. Supreme Court Hears First Crypto Dispute

Coinbase News: On Tuesday, the Supreme Court of the United States heard arguments from former customers of the Coinbase exchange. The lawsuits allege that the cryptocurrency exchange violated California law and that the customers lost more than $30,000 in the crypto market.

Coinbase Bids For Halting Lawsuits

The justices of the U.S. Supreme Court appeared to hold differing opinions regarding a request made by Coinbase Global Inc. to halt customer lawsuits. One of these lawsuits was filed by a user who was victimized by a scammer and later stole funds from his crypto account wallet. Coinbase is attempting to move customer disputes out of the courts and into private arbitration.

Read More: SushiSwap Served With Subpoena By U.S. SEC; CEO Calls For “Legal Defense Fund”

The attorney for Coinbase suggested to the justices that the trial proceedings ought to be put on hold while an appellate court decides whether a motion to coerce arbitration is needed to settle the litigations in accordance with the Federal Arbitration Act. Neal Kumar Katyal, who represents Coinbase, stated that doing so would harm the firm in future actions if it were allowed by a district court to advance with a trial while the company requests an appeals court to uphold its arbitration agreement.

Katyal was quoted as saying:

The very right that Congress has authorized for that immediate appeal is being taken away effectively.

Lawsuits Allege Coinbase Mismanagement

One of the lawsuits was filed in California by a customer named Abraham Bielski, who claimed that in 2021, more than $30,000 was stolen from his Coinbase account by a fraudster. The claim stated that by failing to look into or credit Bielski’s account, the firm broke the Electronic Funds Transfer Act.

In the other lawsuit, former customers accused the crypto exchange of breaking the law regarding deceptive advertising in the state of California by tricking people into paying to participate in sweepstakes in 2021 that offered prizes in the form of Dogecoin (DOGE), a popular memecoin of the crypto market.

After Coinbase’s request that the Supreme Court considers the issue, the proceedings regarding the sweepstakes were halted until the end of March by the judge presiding over the case. At this point, a decision is due by the end of June. In light of this Coinbase news, the share prices of Coinbase (COIN) jumped by 12% and currently trades around the $84 range at the time of writing.

Also Read: Bitcoin Price To Defy FOMC Meet Outcome? Experts Predict Major Rally If This Key Event Occurs 

Pratik has been a crypto evangelist since 2016 & been through almost all that crypto has to offer. Be it the ICO boom, bear markets of 2018, Bitcoin halving to till now – he has seen it all.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.