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- Coinbase emerges victorious in the US Supreme Court ruling
- The ruling enables Coinbase to take customer lawsuits to arbitration
- Arbitration offers a faster and less costly resolution for disputes
Popular cryptocurrency exchange Coinbase, based in the US, has been granted the ability to take customer lawsuits to arbitration. According to a report by Reuters, the US Supreme Court ruled in favor of Coinbase in the recent court hearing, opening the door for the arbitration of customer lawsuits. The case in question began after a scammer stole over $30,000 from a Coinbase account.
Coinbase Wins Supreme Court Ruling Allowing Arbitration for Customer Lawsuits
The Supreme Court justices approved the decision with a 5-4 vote. By moving the lawsuits to arbitration, Coinbase will be relieved of a heavy payment burden and the process will proceed more swiftly.
A user named Abraham Bielski had filed a lawsuit against Coinbase for the theft of over $30,000 from his account. Following the court’s ruling, Coinbase will now be able to take this case to arbitration and be protected from potential high compensations.
In a statement on social media, Coinbase’s Chief Legal Officer, Paul Grewal, expressed his gratitude for the careful examination by the Supreme Court. He said, “Another example of why I believe in the US court system. The rule of law is sometimes slow and sometimes disappointing, but it continues to be our last and best hope in a flawed democracy.”
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Arbitration in law is a dispute resolution method where parties choose to seek the assistance of a neutral third party arbitrator instead of filing a lawsuit. Arbitration is often preferred due to its faster and less costly nature. It also allows parties to resolve their disputes outside of court, often in a more confidential process.
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