The US Supreme Court will hear arguments in the first crypto-related case on Tuesday, when lawyers for San Francisco-based Coinbase try to convince nine judges to stay in a class-action lawsuit against the exchange. crypto. Although the Supreme Court case will be heard on Tuesday regarding crypto, it is not itself a crypto case.
Instead, the case is a fairly esoteric procedural debate about whether the case can proceed in federal court as one — in this case, Coinbase — tries to resolve the dispute in a court of law. Coinbase is in the process of appealing an earlier ruling by a federal court in California allowing both cases, Bielski v. Coinbase and Suski v. Coinbase, to continue, unlike the Coinbase user agreement, which requires that disputes be referred to arbitration.
Arbitration is another way to resolve disputes where unfair damages are often calculated against consumers. U.S. The District Court for the Northern District of California rejected Coinbase’s motion to compel arbitration in the Bielski case last April, arguing that the change from arbitration as outlined is “unqualified” using a “fraudulent dispute” This is not a good job. conflict. .
When Coinbase appealed to the highest court, the 9th US Circuit Court of Appeals in San Francisco, in July, the decision was upheld. Coinbase has become a magnet for class action lawsuits, with judges clamping down on some efforts and allowing others to continue.
The lawsuits cover a wide range of issues, from allegations that the exchange sold unregistered tokens (when the United States Securities and Exchange Commission considered some tokens to be securities) to allegations that the exchange controls its public listings.
Other lawsuits have been linked to hacking and lax security complaints, including one from Bielski, who accused Coinbase of breaking the law by reimbursing more than $31,000 it lost when it was targeted.
Another case the Supreme Court will consider on Tuesday, Suski v. Coinbase, is for a $1 million raffle event held in June 2021. Suski and other customers say they were misled by an ad suggesting they have to buy or sell $100 in dogecoin for a chance to win, when in fact the workers did not. eligible tradedogecoin. As the lawsuits continue, Coinbase is forced into an increasingly difficult game of legal abuse. If the exchange gets what it wants from the Supreme Court, it will be enforced in future courts and tribunals, making it easier for Coinbase to regulate them. Although the final decision does not set any precedent for the most important problems facing crypto, it may have a significant impact on the emerging litigation area in the crypto sector. It will also have significant implications for other crypto companies that are increasingly affected by class action lawsuits.
The court will convene in Washington, D.C., at 10:00 a.m. ET on Tuesday, and this case is the second on the docket. Oral arguments are expected to last 60 minutes.