Crypto exchange Coinbase to ask to stop lawsuits

The cryptocurrency exchange Coinbase has appealed to the US Supreme Court to stop the recent litigation against the platform.

According to Bloomberg, the Federal Court has previously rejected the request of Coinbase representatives to initiate an arbitration process (a procedure for considering a dispute between two parties by a third party — arbitrators). It is obvious that the crypto exchange is now pinning all its hopes on the Supreme Court’s decision.

As for the lawsuits against Coinbase, the first one was filed by a California resident who lost more than $ 31,000 to a cryptocurrency fraudster who managed to gain access to the plaintiff’s Coinbase account. According to the California resident, representatives of the exchange did not show any interest in helping to find and recover the lost funds. In the second lawsuit, Coinbase was accused of violating the consumer protection law, all because of a cryptocurrency raffle.

Given the recent events around Coinbase, it is obvious that the crypto exchange is going through a difficult time: a class action lawsuit for promoting the TerraUST stablecoin, a negative forecast for Coinbase’s profitability for the next 12 months, the dismissal of 1,100 employees, and the demand of employees for the resignation of the management. In addition, the crypto exchange was accused of selling personal data of users to the US government. In early July, the media reported that Coinbase was sharing its customers' geolocation and transaction histories with the U.S. Immigration and Customs Enforcement (ICE). According to the Tech Inquiry research group, in August 2021, Coinbase sold ICE a license to use analytical software. A month later, the exchange signed an agreement with the government to transfer the software worth more than $ 1 million. As a result, the US authorities gained access to various functions of the Coinbase Tracer user data tracking platform.