On Friday, cryptocurrency exchange Coinbase succeeded in its attempts to file customer complaints to private arbitration.
On Friday, the leading cryptocurrency exchange based in the United States, Coinbase, was victorious in its effort to submit customer disputes to private arbitration. The Supreme Court of the United States heard arguments from the exchange’s former customers regarding misplaced assets earlier in March 2023, according to CoinGape. The most recent court decision significantly strengthened arbitration in the consumer dispute. As an outcome of the ruling, the price of Coinbase stock rose slightly.
A 2021 fraudulent attack, according to Abraham Bielski, a Coinbase customer, cost him $30,000. In this regard, Bielski claimed that the exchange had violated the Electronic Funds Transfer Act.
The Supreme Court rules in support of Coinbase
The Supreme Court ruled in favor of the cryptocurrency exchange with a 5-4 vote among the justices, according to a Bloomberg post. As a result, consumer lawsuits need to be suspended and the dispute should be arbitrated.
This is the latest in an ongoing series of anti-crypto cases filed by regulators against cryptocurrency businesses, after the SEC’s complaint against the exchange. Business groups backed Coinbase’s approach on the grounds that arbitration would be less expensive than going to court, according to the report.
Another significant victory for the exchange recently came from the US Court of Appeals for the Third Circuit, which maintained the demand that the SEC deliver a report on the clarity of the cryptocurrency market by October 11, 2023.