Bloomberg News reports that the US Supreme court has declined the request of the Coinbase crypto platform to fast-track arbitration disputes. The court has turned down the request of Coinbase Global Inc. for justices to intervene in the cases and keep the proceedings on hold while the company fights to settle the matter out of court.
Two of the Federal judges of the trial court turned down the requests of Coinbase. The issue was whether the trial proceedings could carry on while the company appeals rulings or if they must wait for a ruling from the 9th US Circuit Court of Appeals, which is in San Francisco based, related to the arbitration requests going ahead.
The company said that if they let the district court proceedings move ahead, through potential class proceedings, discovery, and even if it’s a trial, the arbitrary question on appeal will harm the crypto exchange platform in irreversible ways, despite the case being sent to arbitration eventually. The same was stated to the justices on August 3rd by the company in their request for intervening in the matter.
Bloomberg News reports that there has been a split in the appellate court related to the question. As per Coinbase, as many as six circuits require to halt proceedings while the appeal is going on, and three, including the 9th circuit, do not.
In one such case, a user is seeking compensation, saying that he has lost $31,000 after he turned over his account to a scam artist. There is yet another case in which the court has raised a question on a $1.2 million Dogecoin sweepstakes that did not disclose entrants to buy or sell cryptocurrency, and according to the user, this move has violated California Law.
In the same dispute, the individuals that have been challenged have told the court that they did not have any objection related to the request for court intervention or for putting the proceedings on hold. However, the only thing they have opposed is the proposed resolution of Coinbase. The cases include Coinbase v. Suski 22A92 and Coinbase v. Bielski, 22A91.
