US Supreme Court to Examine Coinbase User Conflict
- The US Supreme Court has decided to review a dispute between Coinbase and its users.
- The case arose following a Dogecoin giveaway organized by Coinbase in June 2021.
- The case raises a legal dilemma between two agreements: one directing disputes to arbitration and the other to a California court.
The US Supreme Court has agreed to review a dispute between Coinbase and a group of users, raising a crucial question: who, the judge or the arbitrator, should determine the framework for resolving contractual conflicts.
Recall that this case arose in the context of Coinbase’s Dogecoin giveaway conducted in June 2021, where customers filed a class action claiming that the platform deceived them, inducing them to spend $100 to participate in a raffle.
Specifically, the controversy emerged from two conflicting agreements, one favoring arbitration and the other judicial litigation handled by a California court. Arbitration is a tool commonly used by companies to resolve disputes privately and at a lower cost.
The Case Heard by the US Supreme Court
Initially, Coinbase had opted for arbitration clauses, but a federal judge in California ruled that the agreement regarding the Dogecoin giveaway, favoring resolution in the courts, should prevail.
The expected verdict will likely have a significant impact on the formulation and application of user agreements, particularly in the field of digital currency trading.
In the meantime, Coinbase is not idle and continues to expand its services, offering new trading options to its users, including cryptocurrency futures trading, thereby making access to these financial instruments more accessible.