Cryptocurrency exchanges also play an important role in the adoption of cryptocurrencies. The reliability of these platforms, which allow investors to trade cryptocurrencies, has been questioned recently. The case of Coinbase, the second largest cryptocurrency exchange in the world, has been taken to the US Supreme Court.
Coinbase goes to US supreme court
Coinbase and two separate class action lawsuits will be discussed in the US supreme court, where it will be the first time a crypto case will be heard. The lawsuit will discuss whether Coinbase can force its customers to arbitrate and suspend other legal proceedings during the lawsuit.
Arbitration, which is an alternative dispute resolution method that takes place outside the court system, is generally preferred by companies. Arbitration, which comes into play as a mandatory clause in company employee and customer contracts, generally protects companies and prevents lawsuits from being filed collectively.
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Coinbase, like many companies, puts an arbitration clause in the user agreement. The customers, who were disturbed by this situation, took the matter to the court. As a result of the investigations, lower courts in the USA decided that Coinbase’s arbitration clause was “unreasonable”. However, the cryptocurrency exchange opposed this situation and took the matter to the US high court.
The first of the class action lawsuits that Coinbase seeks to arbitrate focuses on the complaint of plaintiff Abraham Bielski, who argued that Coinbase should reimburse the money he lost to a cryptocurrency scammer. Bielski claims to have lost $31,000 to someone posing as a PayPal representative.
Another case involves accusations that the lottery by Coinbase was misleading. Plaintiffs allege that, despite the absence of any prerequisites, they were persuaded by Coinbase’s announcement that they would need to trade $100 of Dogecoin in order to participate in the million-dollar lottery.
Coinbase has been dealing with an increasing number of customer lawsuits lately. The decision to be taken by the US Supreme Court in this process is very critical. The Supreme Court, if Coinbase, will also pave the way for the aforementioned cases to be brought to arbitration, possibly to the benefit of the cryptocurrency exchange.
The outcome of the US supreme court is critical for cryptocurrency exchanges and their customers. We are eagerly awaiting the outcome of the decision. So what do you think about this subject? You can share your views with us in the comments section.