Coinbase Seeks To Halt The Lawsuits Related To Dogecoins and Scams
Coinbase cryptocurrency exchange platform has been dealing with two User Lawsuits filed against them. With the ongoing proceedings, Coinbase had filed a non-frivolous appeal soliciting to send the case in a dormant state for some time. Nevertheless, the court proceedings never stopped.
At the same time, Coinbase has been pleading for sending the case into arbitration, as per Bloomberg reports. The two User Lawsuits running against Coinbase have been petitioned to be put into arbitration previously too.
The crypto exchange had urged the slip of cases into arbitration as per the requirement under its user agreements. However, the Federal trial judges rejected to hold back the user filings in both cases.
The two cases are:
Coinbase v. Bielski was filed by a Californian resident Abraham Bielski. Bielski allegedly lost over $31,000 to a scammer who professed to be a PayPal representative and allured him to share his Coinbase account. He accepted that Coinbase assisted him in salvaging the lost funds. But, at the same time, Bielski inculpated Coinbase for violating the Electronic Funds Transfer Act and Regulation E.
Whereas, Suski v. Coinbase encompassed the accusations of the violation of California Consumer Law by coordinating a supposedly misleading event involving a $1.2 million “Sweepstakes”.
The “Sweepstakes” event purportedly involved Memecoin Dogecoin without the incorporation of the mandatory disclaimers or disclosures explaining the nature of the Sweepstakes.
The complaint also included that the investors felt that they had to buy or sell $100 in dogecoin by June 10, 2021, to be entitled to win a cash prize. However, Coinbase failed to specify users who do not trade dogecoin could also take part in the event – leading to the traders feeling deceived.
Now, following up on the rejections against the arbitration of the cases, Coinbase pleaded again.
Coinbase’s Arbitration plea
Responding to the two allegations, Coinbase had pleaded for an intervention from the court in order to value their user agreements. Upon filing the halting petitions, the platform was expecting the Court to cease the User Cases. However, even after filing a non-frivolous appeal seeking to send a case to arbitration, no action was taken by the court, argues Coinbase.
The crypto exchange platform proclaimed that such issues arise “in every case in which a party appeals the denial of a motion to compel arbitration.”
Coinbase appeals that the trial proceedings should stop at the Supreme Court with the company pressing its appeal at the San Francisco-based 9th US Circuit Court of Appeals. Notably, the 9th US Circuit Court denied the halting of filings previously.Source