Crypto exchange Coinbase (NASDAQ:COIN) Global Inc (NASDAQ: COIN) has asked the U.S. Supreme Court to halt two lawsuits filed by users of the crypto exchange.
What Happened: Coinbase said the trial court proceedings for two separate cases filed by users should be stopped until the exchange presses its appeal at the San Francisco-based 9th US Circuit Court of Appeals, Bloomberg reported on Tuesday.
The first case — Bielski v. Coinbase, 22A91 — was filed by Abraham Bielski in April after he lost $31,000 when a scammer gained access to his Coinbase account. Bielski fell victim to the scam after being contacted by an individual pretending to be a PayPal Holdings Inc (NASDAQ: NASDAQ:PYPL) representative.
The Coinbase user claims that the company did not help in reclaiming the stolen funds and violated the Electronic Funds Transfer Act and Regulation E.
The second case — Suski v. Coinbase — is a class action lawsuit filed by lead plaintiff David Suski, alleging that Coinbase violated consumer law and misled investors by holding a $1.2 million Dogecoin (CRYPTO: DOGE) sweepstakes without adequate disclosures.
“Opt in and then buy or sell $100 in DOGE on Coinbase by 6/10/2021 for your chance to win,” read the ad for the program, leading customers to believe that they had to buy or sell $100 worth of DOGE in order to participate.
Federal trial judges in both cases have rejected Coinbase’s bid to send the cases to arbitration, as per the report.
Price Action: Coinbase shares traded 1.13% lower after hours on Wednesday, as per data from Benzinga Pro.
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