Leading US crypto exchange Coinbase reported success in its efforts to resolve potential lawsuits through private arbitration. The exchange filed in the Supreme Court seeking a hearing for the aforementioned appeal.
Coinbase Bringing the Case to Supreme Court
This came as relief for the crypto firm dealing with the lawsuits for quite some time. A spokesperson showcased the gratification towards the Supreme Court for the hearing over the appeal. He also ensured the company would be looking forward towards resolving the matter.
A user of Coinbase named Abraham Bielski reported to sue the crypto exchange after he got scammed over the platform. He said to lose over 31,000 USD and alleged someone not in the connection with the company was responsible for the loss.
According to the filed class action lawsuit, Electronic Funds Transfer Act would make the crypto exchange pay the user with the amount equally to the stolen crypto asset.
First Crypto Hearing in the Supreme Court
Coinbase’ case is said to be the first cryptocurrency case to be taken by the Supreme Court. An attorney for plaintiff Bielski named Glenn Chappell said that according to him too, the case is the first one to be heard in the court. However the lawyers from the plaintiffs side were not in favor and opposed the request to take the case to the court.
Chappell said that the lawyers do not think that Coinbase-like companies should be given the privilege to stay out of litigation given that a district court already titled the arbitration as unlawful. Still the lawyers welcome the opportunity to represent the consumers in the matter within the court.
Well the recent case is not the first or the only one against the leading crypto exchange. On Friday, the high court took the lawsuit against Coinbase filed by the company. The lawsuit filed in the California district court alleged that the crypto exchange violated state law during the promotion of Dogecoin sweepstakes in June last year.
Similar to Bielski’s situation, a district judge denied Coinbase’s attempt to have the sweepstakes-related issue arbitrated.
In both cases, the Ninth Circuit Court of Appeals of the United States rejected Coinbase’s request to halt the litigation at the district court level while the company filed appeals to reverse the decisions denying it arbitration.
There is a significant disagreement among lower federal appeals courts regarding the issue that the Supreme Court will decide, according to Neal Katyal, the attorney who is representing Coinbase before the court. In his petition asking the justices to hear the company’s appeal, he stated that.