Crypto exchange Coinbase Global Inc 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 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 DOGE/USD 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.