The First Crypto Case Has Hit The Supreme Court

There was once a time when cryptocurrency was a thing murmured at the back of the class as everyone else stuck to the currencies they had known and used for so long. Those days are long gone. The rise of cryptocurrency has changed the game. However, with it still being a relatively new addition to the market, there are a host of issues that come with the currency.

It appears not everyone is happy with how cryptocurrencies are being protected and run by those at the top, as the first crypto case has hit the Supreme Court - and it might not be long before other currencies start to watch their backs more than ever before. Is it a bad thing, though, or is this the shake-up that the world of cryptocurrency might have needed all this time?

The US Supreme Court heard motions to pause class action lawsuits

Of course, if there’s one thing many companies want to avoid, it’s being dragged to court. That’s the case for Coinbase, a cryptocurrency company based in San Francisco, which is currently fighting to keep the legal proceedings away from the Supreme Court. Unfortunately for Coinbase, that’s no longer an option. Justices were divided as they sat for an hour listening to arguments that two class action lawsuits should be paused against the company, with Coinbase arguing they should be brought to arbitration instead of taken any further in the court system.

Coinbase is accused of failing to reimburse Abraham Bielski

Why is Coinbase being dragged through the Supreme Court in the first place? That’s all because Abraham Bielski has accused the company of failing to reimburse him a staggering $31,000. Apparently, the moment came when he was targeted by someone falsely claiming to work for PayPal. From there, the scammer had access to Bielski’s Coinbase account and got their hands on the large sum of money. That’s not all. The cryptocurrency company is also in the middle of Suski vs. Coinbase, a case that sees them being accused of misleading people in an advertising campaign about a Dogecoin sweepstakes event.

Coinbase vs. Bielski is a landmark court case for cryptocurrency

One of the biggest arguments to come from the initial hearings at the Supreme Court isn’t actually to do with what happened between Abraham Bielski and Coinbase. Instead, it’s a clause in the contract that many have accused the company of using to simply scare people out of taking legal action, even when they have every right. That’s because Coinbase has a part of their user agreement that talks about using arbitration as their preferred method of settling disputes, meaning they settle away from court instead of seeking legal guidance. Sadly for Coinbase, the Supreme Court didn’t see things the same way and said the company used a “litigation gimmick,” and it was “unconscionable” to gain leverage over its consumers.

The Supreme Court crypto case could affect Coinbase going forward

For now, we have to wait to see if the Supreme Court will side with Coinbase or Abraham Bielski. The problem? Whatever the case, it could change the way that cryptocurrency companies run, especially when it comes to issues like the ones involved in these cases. Arbitration options have long been known to favor the defendant, as it means they don’t have to worry about the legal proceedings of court. Still, Chief Justice John Roberts has admitted the courts have already offered a “huge benefit” in appeals if the case is denied the arbitration process. What if the court sides with Bielski? It could mean that Coinbase is in for the first of many visits to the Supreme Court.

The first crypto case has hit the Supreme Court, and this could be the start of something huge for cryptocurrency. While there is still a way to go to see how the cases will be resolved, it could mean that companies really need to shake up their terms and conditions and the way they handle disputes if they want to protect themselves going forward.