Coinbase Plans To Keep Customer Disputes Out Of Court

Coinbase is arguing in the Supreme Court for an automatic stay on its legal cases, citing an arbitration clause in the user agreement.

The dispute over the cryptocurrency has reached the Supreme Court, and Coinbase is pushing for an automatic stay in the case. Coinbase filed for a stay of the case last August.

In Tuesday’s oral argument, 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 decision of the Supreme Court is expected by the end of June.

Coinbase is seeking to stop two cases

The arbitration clause requires settlement of disputes between the User and the Business through a third party without involving a court.

The cryptocurrency exchange is appealing the stay of two cases, Coinbase v. Bielski and Susky v. Coinbase.

Hackers stole $30,000 from Coinbase customer Abraham Bielski’s account in 2021. Hence, the customer accused the company of violating the Electronics Fund Transfer Act by not investigating the matter and depositing his entire deposit amount.

In another case, David Susky and other clients filed a lawsuit against the exchange for violating California’s false advertising law. Customers claim the exchange defrauded them into participating in Coinbase’s Dogecoin sweepstakes in 2021.

quick resolution wanted

Hasan Jawarei, the lawyer representing Bielski, believes the case should not be delayed given 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 exchanges, competitors with Coinbase are going bankrupt left and right, and we had a customer who lost $30,000.” And we’re getting calls from other customers who have lost hundreds of thousands of dollars, meanwhile, you know, wondering whether Coinbase is going to be around.

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BeInCrypto has reached out to the company or individual involved in the story for an official statement regarding the recent developments, but has not yet received a response.

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