- The cryptocurrency exchange requested a stay of proceedings until dispute is resolved.
- The defendant has requested the court to not reject the intervention plea.
Coinbase, the biggest cryptocurrency exchange in the United States, has come under SEC inspection for purportedly offering securities on its website. The exchange now faces even greater challenges after the Supreme Court turned down its appeal.
According to Bloomberg, the United States Supreme Court turned down Coinbase’s request to skip the arbitration process for a customer dispute. Moreover, the court had rejected its request for intervention by the justices, the statement said. The cryptocurrency exchange has requested a stay of proceedings until the dispute is resolved.
There was a mention of how the two judges hearing the issue in federal court had opted against hearing the appeal and had instead chosen to send the matter to arbitration. Coinbase has filed an appeal, and the judges have been asked to rule on whether the trial may proceed. However, the alternative was to wait for the outcome of the arbitration appeals.
The report stated that Coinbase argued before the court that this might do irreparable injury to their business. The courts seem to be divided on this issue. The crypto trading platform said that around six circuits mandate a stay of proceedings upon appeal submission. A customer who alleges he lost $31,000 when a fraudster accessed his Coinbase account has filed a lawsuit seeking compensation.
Another case involves Dogecoins worth around $1.2 million. The defendant has requested the court to not reject the intervention plea. But they also don’t want to put a halt to the proceedings. They just disagree with Coinbase’s offered solution and reject it.
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