Coinbase Asks The Court To Cancel The Lawsuits Accusing The Exchange Of Scam And Fraud

Coinbase Asks The Court To Cancel The Lawsuits Accusing The Exchange Of Scam And Fraud

Coinbase Asks The Court To Cancel The Lawsuits Accusing The Exchange Of Scam And Fraud

  • Coinbase lawyers intend to appeal two lawsuits from users
  • In them, the exchange is accused of “hiding information” and “assisting a scammer.” 
  • The company requires to send cases to arbitration until the appeal is completed.

Crypto exchange Coinbase applied to the US Supreme Court requesting to arbitrate two lawsuits against the company. In it, the platform is accused of aiding a scammer and hiding information about the DOGE draw for $1.2 million. 

Federal judges denied Coinbase’s request to dismiss the lawsuits in both cases. However, the exchange insists that both claims are baseless. 

These are claims 22A91 and 22A92. In the first case, plaintiff Avraham Belsky is seeking compensation of $31,000 from the company. He lost funds after he gave the data from the wallet to a scammer who introduced himself as a PayPal employee. 

The second lawsuit alleges willful “withholding information” in a $1.2 million DOGE sweepstakes. The victim did not understand that you do not need to buy cryptocurrency to participate in the lottery. As a result, he simply lost money.

In both cases, representatives seek to transfer cases to the category of class actions. But Coinbase does not intend to pay compensation. The exchange says it has nothing to do with both precedents. 

Now the exchange has filed an appeal against the decision of the first instance. But this did not put the proceedings on pause, because of which the court may find the company guilty in absentia. 

Such lawsuits have already become a kind of routine. Moreover, they are put forward not only by firms but also by celebrities. We previously reported that Kim Kardashian does not consider herself guilty in the crypto scam case. And before that, Elon Musk was accused of organizing the “Ponzi scheme.” He demanded compensation of 258 billion dollars.

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