September 28, 2022
  • September 28, 2022

Supreme Court rejects Coinbase’s claim

By on August 11, 2022 0

The United States Supreme Court has rejected a request by cryptocurrency exchange Coinbase to intervene in a pair of lawsuits.

As Bloomberg reported on Thursday, Aug. 11, Coinbase had asked the court to stay the cases while the company tries to settle the lawsuits out of court.

Read more: Coinbase in Supreme Court: Stop 2 User Lawsuits in Crypto Cases

Two federal judges had already blocked Coinbase’s attempt to take the cases to arbitration. The question facing the high court was whether civil lawsuits against Coinbase could continue while the company appealed those rulings, or whether it should wait for a ruling from the 9th U.S. Circuit Court of Appeals on arbitration. before continuing.

“Allowing district court proceedings to move forward — through discovery, potential class action lawsuits, and even a trial — while the arbitrability issue is on appeal” would hurt Coinbase in ways that cannot be undone, even if the case is ultimately sent to arbitration, the company told the judges in its request to intervene last week.

As PYMNTS reported, Coinbase is facing two lawsuits from customers, both of which are trying to reach the class action level.

In the first case, a man asks Coinbase to pay him back $31,000 that he says he lost giving remote access to a scammer.

The second case accuses Coinbase of violating California consumer law by holding a $1.2 million dogecoin raffle without adequately disclosing that participants were not required to buy or sell the crypto -change.

See also: SEC probes Coinbase on staking, asset classification and stablecoin products

Coinbase revealed this week that it is also under investigation by the United States Securities and Exchange Commission (SEC) for its staking programs, which allow users to earn rewards by holding certain cryptocurrencies. .

The company said it received subpoenas and requests from the commission for documents and information about certain customer programs and plans for future products. The requests relate to Coinbase’s staking programs, asset listing process, asset classification, and stablecoin products.

Coinbase said it doesn’t believe these things would negatively impact its earnings, although it said there may be negative effects down the road.

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