Coinbase walks away with Supreme Court victory in arbitration case

Paul Grewal tweeted that Coinbase is ‘grateful’ for the Supreme Court’s decision

article-image

Coinbase CEO Brian Armstrong | Source: TechCrunch "775208327GB00107_TechCrunch" (CC license)

share

The Supreme Court sided with Coinbase in a 5-4 ruling that reinforces arbitration. 

The case was argued back in March, and is part of the October 2022-2023 Supreme Court term. In March, the Justices were divided on the case.

Justice Kavanaugh, who delivered the opinion, said, “When a federal district court denies a motion to compel arbitration, the losing party has a statutory right to an interlocutory appeal.”

Paul Grewal, Coinbase’s chief legal officer, tweeted that Coinbase is “grateful to the Supreme Court of its careful review. Another example of why I believe in the American court system.”

“The rule of law is sometimes slow, and at times disappointing. But it remains our last, best hope in an imperfect democracy,” he continued.

Loading Tweet..

Coinbase v. Bielski sought to allow Coinbase to halt customer lawsuits while the crypto company moved them out of the court and into private arbitration. 

It stems from a class action suit filed by Bielski, on behalf of Coinbase users, which alleges that Coinbase “failed to replace funds fraudulently taken from the users’ accounts.”

According to the original plaintiff, a scammer pretending to be a PayPal representative accessed his Coinbase account and drained it of roughly $31,000. However, Coinbase’s customer service caused a “nightmare” because the bots did not have the responses or ability to help the situation. 

The Supreme Court case is not the only legal battle Coinbase currently faces. It has two open cases with the SEC — one is Coinbase v. SEC which seeks to force the SEC to provide clear regulations for the crypto industry. Then there’s the SEC v. Coinbase, in which the regulatory agency accuses Coinbase of operating an unregistered exchange and listing and selling unregistered securities.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Permissionless is a conference for founders, application developers, and users. Come meet the next generation of people building and using crypto.

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

4.png

Research

This months PPGC covered four main areas. Firstly, debriefing the progress and status of the mainnet implementation of the Ahmedabad hard fork. Secondly, a retrospective on the testnet phase of the Ahemdabad Hard Fork. Thirdly, an update on PIP-36 which involves replaying failed state syncs. Lastly, PIP-47 which pushes upgrades to the Polygon Protocol Council.

article-image

A former Binance executive is set to help Bybit with compliance, while a Coinbase leader expands his role

article-image

Plus, Ubisoft is launching NFTs for its Captain Laserhawk shooter game

article-image

Various factors are likely to temper strong jobs data-spurred optimism in the short term, industry watchers say

article-image

Sygnum’s head of investment researchthinks Solana can pass Ethereum by drawing institutions for tokenization platforms and stablecoins

article-image

Plus, NFT trading volumes are seeing all-time lows