Why is Coinbase asking the Supreme Court to stay its legal disputes?

Why is Coinbase asking the Supreme Court to stay its legal disputes?

Coinbase is arguing in the Supreme Court to automatically stay its legal cases, citing the arbitration clause in the user agreement.

The cryptocurrency disputes have reached the Supreme Court and Coinbase is pushing to automatically stay the case. Coinbase filed a request to stop the case last August.

In an oral argument, the U.S. exchange claimed that the arbitration clause, which falls under the Federal Arbitration Act, was part of its user agreement.

The case could set a precedent for future disputes between cryptocurrency exchanges and their customers. The Supreme Court’s decision is expected by the end of June.

Coinbase seeks to stop two cases

The arbitration clause requires the resolution of disputes between a user and the company through a third party without involving the court.

The cryptocurrency exchange is appealing to stop two cases, Coinbase v. Bielski and Suski v. Coinbase.

Hackers stole $30,000 from Coinbase customer Abraham Bielski’s account in 2021. Therefore, the customer accuses the company of violating the electronic funds transfer law by failing to investigate the matter and complete his deposits.

In another case, David Suski and other customers filed claims against the exchange for violating California’s false advertising law. The customers claim that the exchange misled them into participating in Coinbase’s Dogecoin Sweepstakes in 2021.

Swift resolution sought

Hassan Zavareei, the lawyer representing Bielski, believes the case should not be delayed, considering the recent collapse of cryptocurrency exchanges. He says:

“Look at this case, where Coinbase, the whole crypto market is collapsing under our feet, and other exchanges, competitors with Coinbase are filing for bankruptcy left and right, and we have a client who lost $30,000, and we ‘m getting calls from other clients who have lost hundreds of thousands of dollars, meanwhile, you know, I wonder if Coinbase will continue to exist.”

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