The leading crypto exchange Coinbase has urged the US Supreme Court to halt two of its account holder cases. According to Bloomberg reports Coinbase has also appealed to the court to send the cases to negotiation.
The suits are Bielski v. Coinbase, 22A91, and Suski v. Coinbase 22A92.
The first one Coinbase vs. Bielski was filed by California resident Abraham Bielski, an account holder who said that Coinbase should compensate him for $31,000 he lost after he allowed remote access to his account to a scammer. The scammer claimed to be a PayPal representative and accessed Bielski’s Coinbase account.
Bielski revealed that the crypto exchange provided little help in recovering the lost funds and accused Coinbase of breaching the Electronic Funds Transfer Act and Regulation.
In the other case, Suski vs. Coinbase, there were allegations on Coinbase of breaching Californian consumer regulations by holding a $1.2 million Dogecoin sweepstakes event without revealing that participants didn’t have to trade the cryptos.
Both the cases are attempting for a class action status.
Suski alleged that traders thought they had to trade $100 in dogecoin by June 10, 2021, to stand a chance to win a cash prize. But Coinbase did not inform users that without trading dogecoin, they could take part in the event. Thus, leaving some users feeling misled.
However, the Federal trial judges in the above cases have rejected Coinbase’s plea to send the cases to arbitration, a condition which the company says must be fulfilled under its user agreements.
The crypto exchange thus said at the crypto exchange that the trial court proceedings must be stopped while the firm pursues its appeal at the San Francisco-based 9th US Circuit Court of Appeals. Note that the 9th Circuit has refused to halt the lawsuits during the appeal.
One of the arguments laid down by Coinbase was that the issue “arises in every case in which a party appeals the denial of a motion to compel arbitration.”
Also Read: SEC Investigates Coinbase Over Crypto Listings
