Coinbase met some resistance March 21st He tried to persuade a Supreme Court judge that certain class actions should be arbitrated.
Coinbase claims in favor of arbitration
As previously reported by CryptoSlate, Coinbase faces lawsuits from various customers alleging fraudulent activity. The company aims to resolve these disputes expeditiously.
Coinbase’s attorneys are now arguing with a U.S. Supreme Court judge that they should stay the district court proceedings and refer the case to arbitration.
Coinbase’s request was met with resistance. Members of the Supreme Court, including Justice John Roberts, noted that the U.S. Congress has given Coinbase immediate appeal rights. This means you don’t have to wait for a final judgment before appealing.
Roberts called this right “the most valuable right” [Coinbase] Judge Elena Kagan, on the other hand, called the rights “pretty valuable” despite the company’s demands.
Coinbase attorney Neal Kumar Katyal tried to refute the judge’s allegations. He said that in certain circumstances, Coinbase’s right to an immediate appeal is “virtually” suspended if the case proceeds in a district court.
Meanwhile, Judge Brett Kavanagh conceded that Coinbase did not want to be “forced into a large settlement” without being able to exercise its right to appeal immediately. As such, he called the company’s concerns “realistic.”
A final decision on this matter is expected by the end of June.
Client’s lawyer cite industry collapse
The ongoing lawsuit concerns a class action lawsuit originally filed by Coinbase exchange customer Abraham Bielski. Bielski sued the company in 2022, claiming the company failed to protect him after he lost money to fraud.
Hassan Zavaley, representing Bielski, attended the current hearing and highlighted the risks of delays in the settlement. He noted that many of Coinbase’s competitors have gone bankrupt, and that clients “are wondering if Coinbase will exist by the time these appeals court decisions are made.”
Another customer, David Suski, filed a lawsuit over an allegedly misleading Coinbase giveaway. The current hearing only mentioned that incident.