Supreme Court takes up first cryptocurrency case

The US Supreme Court is hearing its first case related to cryptocurrency today. This has raised the possibility that future cases will be heard concerning digital assets. Despite the rising popularity of this type of currency, there are concerns about fraudulent activity in the industry. However, the current case only concerns procedural issues surrounding two class action lawsuits against crypto exchange Coinbase. The court will decide whether the case can move forward while Coinbase argues that it should move to arbitration. The decision on this case will have implications for how other crypto companies can resolve disputes.

The lawsuits in question involve Abraham Bielski, who wants Coinbase to compensate him for losing $31,000 after giving remote access to his account to a scammer, and class members in Suski v. Coinbase, which surrounds a million-dollar sweepstakes event from June 2021. The plaintiffs are alleging that they were misinformed regarding how to enter the sweepstakes.

While the outcome of this case won’t have broad implications for the broader crypto industry, it does have implications for how similar companies can settle disputes involving class action lawsuits. Arbitration cases are typical for retail businesses with large customer bases in the US, and the same is true for disputes with crypto exchanges.