The United States Supreme Court ruled against Coinbase in a case involving a $1.2 million Dogecoin sweepstakes from 2021.
In a decision that will go down in history, the United States Supreme Court issued a ruling on May 23 against the cryptocurrency exchange Coinbase in relation to a dispute that revolved around the $1.2 million Dogecoin sweepstakes that took place in 2021.
The United States Supreme Court ruled that a California court had correctly exercised its authority in deciding whether or not Coinbase has the authority to compel its users to participate in arbitration.
Supreme Court Handles Coinbase A Loss
Justice Ketanji Brown Jackson delivered a verdict on May 23, asserting that the court, not the arbitrator, determines which contract applies in arbitration. According to Bloomberg Law, the Supreme Court did not take into consideration a warning issued by the cryptocurrency exchange that a verdict against it would make the judicial system more chaotic.
In the Coinbase v. Suski case, the court emphasized that arbitration falls under the category of “contract and consent” and that in cases involving competing contracts, the court should resolve the primary agreements between the parties.
We conclude that a court, not an arbitrator, should decide whether or not the parties’ second agreement superseded their initial agreement. The court upheld the Ninth Circuit’s verdict in a statement. Coinbase users complained that they had to spend $100 to participate in a Dogecoin giveaway in 2021.
Suski asserted that the marketing business that Coinbase had contracted to promote the sweepstakes had employed strategies that were “false and misleading” in order to conceal the fact that the entry was free of charge.