Breaking: Coinbase Loses Supreme Court Case Over Dogecoin Dispute
In a landmark decision on May 23, the U.S. Supreme Court has ruled against crypto exchange Coinbase regarding a despite related to the $1.2 million Dogecoin sweepstakes in 2021. The Supreme Court stated that a California court had correctly used its authority to resolve whether Coinbase can force users into arbitration.
Supreme Court Handles Coinbase A Loss
In a ruling on May 23 by Justice Ketanji Brown Jackson, the SC said a court, not the arbitrator, decides which contract applies in arbitration. The Supreme Court also dismissed a warning by the crypto exchange that a ruling against it would invite legal turmoil, reported Bloomberg Law.
The opinion in Coinbase v. Suski emphasized that arbitration is a matter of “contract and consent” and when there are disputes related to competing contracts a court should decide primary agreements between the parties.
“We conclude that a court, not an arbitrator, must decide whether the parties’ first agreement was superseded by their second. The Ninth Circuit’s judgment is affirmed,” the court stated.
Coinbase users argued they were forced to pay $100 to enter a giveaway related to Dogecoin in 2021. Suski alleged that the marketing company hired by Coinbase to run the sweepstakes used “false and misleading” tactics to disguise the free-entry option.
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The post Breaking: Coinbase Loses Supreme Court Case Over Dogecoin Dispute appeared first on CoinGape.
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