Coinbase requests US Supreme Court intervention to stop ‘frivolous cases’

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Coin­base wants the US Supreme Court to stop two law­suits against it — which it con­sid­ers “friv­o­lous” — to allow room for arbi­tra­tion, Bloomberg News report­ed on August 3.

The two law­suits are cur­rent­ly before Fed­er­al courts, where the judges have reject­ed the exchange’s move to send the cas­es into arbitration.

Coin­base plans to appeal this deci­sion, claim­ing that its user agree­ment requires arbi­tra­tion first. But it wants the Supreme Court to halt the cas­es while pur­su­ing the appeal.

Accord­ing to the cryp­to fir, all court pro­ceed­ings should auto­mat­i­cal­ly stop when one of the par­ties appeals to refer the case to arbitration.

The deci­sion of the Supreme Court and the even­tu­al result of the appeal could seri­ous­ly impact the sta­tus of arbi­tra­tion claus­es in the firm’s users’ agreement.

The lawsuits

The two cas­es are Sus­ki v. Coin­base 22A92 and Biel­s­ki v. Coin­base 22A91. Sus­ki is accus­ing Coin­base of mis­lead­ing traders dur­ing its $1.2 mil­lion sweep­stakes event for Doge­coin (DOGE), where users had to trade $100 worth of Doge­coin to win cash prices.

Accord­ing to the com­plainant, the exchange did not pro­vide enough dis­clo­sures that users who did not trade could also par­tic­i­pate in the event.

On the oth­er hand, Abra­ham Biel­s­ki is suing the com­pa­ny for not pro­vid­ing enough assis­tance when he lost $31,000 because a scam­mer gained access to his Coin­base account.

He accused the com­pa­ny of vio­lat­ing the Elec­tron­ic Funds Trans­fer Act and Regulations.

Both com­plainants seek to turn the cas­es into class action suits which the com­pa­ny wants to avoid.

Mean­while, Coin­base is under inves­ti­ga­tion by the Secu­ri­ties and Exchange Com­mis­sion (SEC) over list­ing unreg­is­tered secu­ri­ties. The cryp­to exchange has vehe­ment­ly denied this allegation.

Its stock val­ue has risen by over 20.20% in the last 24 hours to $80.81.

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