Coinbase, the largest crypto exchange in the US, has won a Supreme Court ruling allowing the company to suspend deliberation on a lawsuit and move proceedings to private arbitration.
While it may not directly affect cryptocurrencies, the victory marks the first for a digital asset company in a Supreme Court ruling.
The Supreme Court ruled in favor of the digital asset firm 5 to 4, overturning a lower court ruling on a client’s lawsuit alleging that Coinbase failed to recover funds fraudulently taken from its account to replace.
Says Judge Brett Kavanaugh,
“The only question here is whether the court should suspend the preliminary investigation as long as the incidental appeal is pending. The answer is yes: the court must suspend her treatment.”
Katherine Minarik, vice president of litigation at Coinbase, tells FOX Business.
“It makes sense that litigation in lower courts would be suspended while an appeals court decides whether a case belongs in court at all…
Coinbase appreciates today’s Supreme Court decision recognizing that companies like Coinbase, as well as our customers, bear significant burdens when cases that belong in an arbitration process are instead pursued in lengthy and costly litigation.
Coinbase Chief Legal Officer Paul Grewal also comments on the ruling: calling it is a “significant victory”.
“We are grateful to the Supreme Court for its careful review. Another example of why I believe in the American justice system. The rule of law is sometimes slow and sometimes disappointing. But it remains our last, best hope for an imperfect democracy.”
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