Coinbase has encountered some resistance on March 21st as he tried to persuade Supreme Court justices that some class action lawsuits should go to arbitration.
Coinbase argues in favor of arbitration
As previously reported by CryptoSlate, Coinbase is facing legal action from various clients for alleged wrongdoing. The firm aims to resolve these disputes quickly.
Now, Coinbase’s legal counsel has argued with the justices of the United States Supreme Court that the proceedings in the district courts should be stayed and the cases should go to arbitration.
Coinbase’s request was met with resistance. Members of the Supreme Court, including Justice John Roberts, noted that the US Congress granted Coinbase the right to appeal immediately, meaning it will not have to wait for a final judgment before appealing.
Roberts called the right “the most valuable right (Coinbase) could have,” while Judge Elena Kagan called the right “a pretty valuable thing” despite the company’s demands.
Coinbase attorney Neal Kumar Katyal attempted to counter the judges’ argument. He said that in certain circumstances, the right of immediate appeal would “effectively” be denied to Coinbase if litigation proceeds in the district courts.
Judge Brett Kavanagh, meanwhile, acknowledged that Coinbase did not want to be “forced into a massive settlement” without being able to use the right of immediate appeal. As such, he called the company’s concern “realistic”.
A final decision on the matter is expected by the end of June.
The client’s lawyer cited the collapse of the industry
The ongoing lawsuit relates to a class action lawsuit originally brought by Abraham Bielski, a customer of Coinbase’s exchange. Bielski sued the company in 2022, alleging the company failed to protect him after he lost money to a scam.
Hassan Zavareei, who represents Bielski, was present at the current hearing and highlighted the risks of a delayed settlement. He noted that many of Coinbase’s competitors have gone bankrupt and said customers are “wondering if Coinbase will be around by the time these appeals court rulings are made.”
Another customer, David Suski, filed a complaint over an allegedly misleading Coinbase giveaway. The current hearing only mentioned this case in passing.