The US Supreme Court is set to hear an appeal from cryptocurrency company Coinbase (NASDAQ:COIN), regarding a legal dispute with its users over a $1.2 million Dogecoin sweepstakes held in 2021. The case, known as Coinbase v. Suski, 23-3, centers around two conflicting agreements - an initial user agreement advocating for arbitration in disputes, and a later sweepstakes-specific agreement that calls for court resolution.
The crux of the matter is whether an arbitrator or judge should determine the controlling agreement. Users have filed a class-action lawsuit, alleging that Coinbase breached California's false advertising law with the sweepstakes. They argue that the company did not fully disclose the ability to enter the sweepstakes without crypto transactions.
Coinbase maintains that its user policies necessitate arbitration for disputes such as these. Despite their appeal for arbitration based on the initial user agreement, a federal judge in California and the 9th US Circuit Court of Appeals have upheld the decision to proceed in court.
The case brings into focus Coinbase's user policies and consumer rights, and it's worth noting that Coinbase won a previous litigation stage at the Supreme Court in June. As the case unfolds, the Supreme Court's decision will be pivotal in determining which agreement holds sway - the initial user agreement advocating for arbitration or the sweepstakes-specific agreement calling for court resolution.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.