On Friday, the U.S. Supreme Court agreed to hear Coinbase Global Inc’s request to stop two cases brought by users who claim the cryptocurrency exchange failed to secure their cash from theft and misrepresented Dogecoin sweepstakes and belong in private arbitration.
The cryptocurrency exchange platform’s customers have filed two lawsuits, and Coinbase Global Inc. has requested the US Supreme Court to put a stop to the litigation while it pursues appeals to have the cases arbitrated. In one instance, a guy claims Coinbase should reimburse him for $31,000 he lost as a result of giving a fraudster remote access to his account. In the other, it is alleged that Coinbase broke California consumer law by running a $1.2 million Dogecoin prize without fully informing participants that they weren’t required to acquire or sell the cryptocurrency. Class action status is sought in both lawsuits.
The justices heard Coinbase’s appeal of lower court orders that denied the company’s request to halt the two planned class actions at the trial court level while it appealed judge decisions that did not require the plaintiffs to submit their claims to arbitration.