The U.S. Supreme Court has ruled in favor of Coinbase, allowing the company to suspend court proceedings and take customer cases to arbitration.
The US Supreme Court supported Coinbase’s proposal to stop customer lawsuits. The judges overturned the court’s decision to sue a defrauded user. Previously, judges were split on Coinbase.
US Supreme Court Backs Coinbase
The U.S. Supreme Court has supported cryptocurrency exchange Coinbase’s proposal to stop client lawsuits.
Coinbase’s legal struggles continue. Coinbase, which has been sued by the SEC and focused on this litigation process, is also fighting other lawsuits. A Coinbase user sued Coinbase after money was stolen from his account. Coinbase filed an appeal, claiming that the claims belong to arbitration, which the lower court denied.
Coinbase took this case to arbitration because it was cheaper and faster. However, the lower court did not pave the way for Coinbase. The US Supreme Court overturned the lower court’s decision and moved the case to arbitration.
The US Supreme Court’s case includes the complaint of customer Abraham Bielski, who had $30,000 stolen from his Coinbase account in 2021. In this case, Coinbase was accused of violating the Electronic Funds Transfer Act by failing to investigate or reopen Bielski’s account.
The US Supreme Court shed light on Coinbase’s request to stop its lawsuits with customers. 5 of the judges got Coinbase right. However, 4 judges preferred to vote against.
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