The Supreme Court has ordered to halt customers’ court proceedings against Coinbase. The company can now move customer litigation into arbitration.
The arbitration clause mentioned in user agreements of some businesses requires the settlement of disputes between a user and the company through a third party without involving the court.
Arbitration aims to resolve disputes between parties in a timely manner without going through the tedious process of the traditional judicial system.
Coinbase Will Settle Disputes Through Arbitration
According to BloombergLaw, the US Supreme Court allowed Coinbase to move customer disputes into arbitration. The court voted 5-4 in favor of Coinbase to put a hold on the legal cases filed by its customers.
In August 2022, Coinbase asked the Supreme Court to halt two lawsuits, namely, Coinbase vs. Bielski and Suski vs. Coinbase, through the arbitration clause.
Abraham Bielski lost over $30,000 to hackers from his Coinbase account. Hence, he took legal action against Coinbase for not investigating the matter and making his deposits whole.
At the same time, David Suski and other customers claim that Coinbase duped them to invest in Dogecoin Sweepstake in 2021. They accuse the company of violating California’s advertising laws.
In March 2023, the Supreme Court heard oral arguments from both parties regarding the arbitration dispute. Coinbase’s lawsuit is the first full-fledged crypto dispute presented before the Supreme Court.
Hence, many believe the decision could set a precedent for similar lawsuits.
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