Coinbase has asked the U.S. Supreme Court to stop two lawsuits brought by users of the platform. It is trying to get those cases heard in private arbitration.
Coinbase has asked the U.S. Supreme Court to stop two lawsuits brought by users of the exchange, and the company aims to get an appeal to take the case to arbitration. Bloomberg first reported the news on August 3.
Coinbase emergency intervention
Coinbase called for urgent intervention in the filing, saying it would suffer “irreparable harm” if the lawsuit was allowed to proceed. The first case involved a man who lost $31,000 after giving crooks remote access to his account. Another case involved holding a $1.2 million Dogecoin sweepstakes in alleged violation of California consumer law without adequately disclosing that entrants had to buy or sell the cryptocurrency.
Coinbase has point to user agreement Users agreed as a way to have the case heard in private arbitration, but the court rejected that. As such, Coinbase is appealing to the U.S. Supreme Court.
Coinbase will want to put these cases behind as soon as possible, as they only affect the company’s development efforts. The exchange has been hit with a number of controversies recently, not the least of which is insider trading by a former product manager.
Insider trading case updated as trading volumes drop
A former Coinbase Global product manager accused of insider trading has pleaded not guilty to wire fraud charges.Reuters report The news on Aug. 3, along with the first insider trading case in the U.S., is heating up, marking a watershed moment in the history of cryptocurrencies.
The three were charged with wire fraud and conspiracy to commit wire fraud for more than $1.1 million in profits. Coinbase has launched an internal investigation into the matter and has made it clear that such behavior will not be tolerated.
Coinbase’s trading volume is falling as the exchange is losing some of its dominance in the market. Chief Executive Brian Armstrong has said it depends on scaling the company, which he says leads to inefficiencies and slowdowns.
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