Coinbase Asks The Supreme Court to Halt Two Lawsuits

Coinbase has asked the U.S. Supreme Court to stall two ongoing lawsuits being launched against the crypto exchange by account holders just after appealing the cases in Federal court, per a report by Bloomberg.

Coinbase is being sued by two customers, with one looking to get back $31,000 in losses after unknowingly giving access to his account to a hacker.

Abraham Bielski of California claims to have lost funds after being “targeted by a scammer who purported to be a PayPal representative.” When Bielski realized his mistake, he attempted to contact Coinbases support desk but what he found instead was “a customer-service nightmare.” Per the Bielski v. Coinbase, 22A91 case

According to the document, he seeks to represent a class of similarly situated individuals with claims against Coinbase for violations of the Electronic Funds Transfer Act and Regulation E therein.”

The subsequent lawsuit comes from New York native David Suski who alleges that the number one crypto exchange in America ran a “deceptive digital ad campaign” when the corp ran a Dogecoin sweepstake in June 2021.

The suit claims that Coinbase failed to “adequately protect the interest of class members” when they made it look as if one would have to trade $100 worth of Doge to join the contest, but in actuality, one could enter it for free.

Coinbase is calling on the Supreme Court on a so-called "emergency basis." The San Francisco-based firm failed to appeal the suits to the 9th Circuit court.

The exchange argues that it has protection under its user agreement, stating that customers must proceed with arbitration.

This is not Coinbase's first run-in with the legal system as it is currently being investigated in connection to the corp potentially listing multiple cryptocurrencies that should have been registered as securities.

The U.S. Securities and Exchange Commission (SEC) is leading the investigation, which began last month; Coinbase claims it has violated no law.

Coinbase did not take these claims lightly as its chief legal officer Paul Grewal took to Twitter to defend his employer's honor stating, “We are confident that our rigorous diligence process―a process the SEC has already reviewed―keeps securities off our platform, and we look forward to engaging with the SEC on the matter,”