Coinbase, the largest crypto exchange in the US, has won a Supreme Court ruling allowing the company to stay deliberating on a lawsuit and escalate the proceedings to private arbitration.
While it may not have a direct impact on cryptocurrencies, the win is the first by a digital asset company in a Supreme Court ruling.
The Supreme Court ruled 5-4 in favor of the digital asset company, overturning a lower court’s decision regarding a customer’s lawsuit alleging that Coinbase failed to replace funds fraudulently withdrawn from its account.
Judge Brett Kavanaugh says:
“The only question here is whether the district court must stay its pretrial and trial while the preliminary appeal is pending. The answer is yes: the district court must stay its proceedings.”
Katherine Minarik, Vice President of Litigation at Coinbase, tells FOX Business.
“It makes sense that litigation would be suspended in a lower court while an appellate court decides whether a case should even go to court…”
Coinbase welcomes today’s decision by the Supreme Court, which recognizes that companies like Coinbase, as well as our customers, bear significant burdens when cases that should be subject to arbitration are instead tried in lengthy and costly court proceedings.”
Paul Grewal, Coinbase’s Chief Legal Officer, also commented on the ruling: vocation It was an “important victory”.
“We are grateful to the Supreme Court for its due diligence. Another example of why I believe in the American court system. The rule of law is sometimes slow and sometimes disappointing. But it remains our last and best hope in an imperfect democracy.”
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