Coinbase Loses Supreme Court Case Related to Dogecoin: Details

Coinbase Loses Supreme Court Case Related to Dogecoin: Details

Coinbase, the main US exchange, has suffered a failure in the Supreme Court, losing their arbitration dispute revolving around a Dogecoin giveaway.

Coinbase, the main US exchange, has suffered a failure in the Supreme Court, losing their arbitration dispute revolving around a Dogecoin giveaway.

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Users accused the trading platform of false advertising, claiming they were tricked into shelling out $100 for the giveaway.

“What a week. Some win. Some lose. We are grateful to have had the opportunity to present our case to the Court and appreciate the Court’s consideration of this matter,” said Coinbase lead attorney Paul Grewal. saying on social networks

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The exchange wanted to force arbitration, as it is much easier for companies to resolve the matter without having to resort to court litigation.

Coinbase users agreed that disputes should be resolved through arbitration. However, the Dogecoin giveaway case caused a legal headache for Coinbase as a separate agreement stipulated that any disputes related to this specific contest would have to be resolved in a California court. The arbitration provision in the user agreement contradicted the forum selection clause for the contest.

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The United States Court of Appeals for the Ninth Circuit ruled against Coinbase, affirming a decision that was made earlier by a federal judge in California.

The Supreme Court agreed to hear the dispute in November after Coinbase asked to appeal a lower court ruling.

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While the judges did not explicitly side with the Ninth Circuit, they unanimously ruled that Coinbase was wrong.

The Supreme Court rejected Coinbase’s claim that not allowing it to force arbitration would cause chaos.

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