Coinbase has asked the U.S. Supreme Court to halt two lawsuits filed by users of the platform. It is trying to get the cases to be heard in private arbitration.
Coinbase has asked the United States Supreme Court to halt two lawsuits filed by users of the exchange, while the company aims to gain appeals that would send the case to arbitration. Bloomberg first reported the news on Aug. 3.
Coinbase emergency intervention
Coinbase asked for emergency intervention in the filings, saying that it would suffer “irreparable harm” if the lawsuits were allowed to go on. The first case relates to an individual who lost $31,000 after he gave a scammer remote access to his account. The other case involves an alleged violation of California consumer law by holding a $1.2 million Dogecoin sweepstakes that did not adequately disclose that the entrants had to buy or sell the crypto.
Coinbase has pointed to user agreements that users agreed to as a way of getting the case to be heard in private arbitration, but courts have rejected that. As such, Coinbase is making its appeal to the U.S. Supreme Court.
Coinbase will want to put these cases behind it as quickly as possible, as these cases only take away from the company’s efforts to grow. The exchange has been hit with a few controversies lately, not the least of which is the insider trading by a former product manager.
Insider trading case updated as volumes fall
The former Product manager at Coinbase Global who was charged with insider trading pleaded not guilty to wire fraud charges. Reuters reported the news on Aug. 3, and what is the first case of insider trading in the U.S. is heating up to be a watershed moment in crypto’s history.
Three individuals were charged with wire fraud and wire fraud conspiracy that generated profits of over $1.1 million. Coinbase had launched an internal investigation into the matter and was clear that it does not tolerate such acts.
Coinbase is experiencing falling trading volumes, as the exchange is losing some of its dominance in the market. CEO Brian Armstrong has said that it was down to scaling the company, which he says results in less efficiency and a slowdown.