Coinbase, US’s largest crypto exchange landed under the scrutiny of the SEC for allegedly listing securities over its platform. Another big trouble has emerged for the exchange as the Supreme court rejected its request.
Coinbase asks court to hold proceedings
Bloomberg reported that US’s apex court declined Coinbase’s appeal to immediately consider its user dispute to arbitration. It added that the court denied its plea for the justices to step in the case. The crypto exchange asked the court to hold the proceeding until it settles the litigation.
It mentioned that the two federal trial court judges decided to reject the appeal to move the case to arbitration. Judges were asked to conclude whether the trial proceeding can continue while Coinbase calls against the rulings. However, the other option was to wait for the ruling over the appeals on the arbitration.
The report mentioned that Coinbase asked the court that this could harm them in a way that it can’t be healed. This has split the appellate courts. The crypto exchange said that around six circuits require the proceedings to stop when the appeal is submitted.
What are the allegations?
One of the cases against Coinbase seeks repayment as a user claims that he lost $31,000 after a scammer got access to his account.
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While another lawsuit is related to $1.2 million worth of Dogecoins. The challenger asked the court that they don’t resist the plea of intervention. However, they don’t want the proceedings to go on hold. They just reject Coinbase’s proposed resolution.
Earlier, the SEC launched its investigation on its staking programs and yield generating products. Coinbase recently issued its quarterly report. This comes after the crypto exchange was hit by the watchdog for listing and trading securities.
However, Coinbase held its stance that the listed tokens are not securities and rejected SEC’s purview. While the SEC also claimed that exchanges ex-employee were involved in insider trading.
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