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9th U.S. Circuit Court of Appeals

Dec. 20, 2022

Coinbase can’t force customer into arbitration over sweepstakes, Circuit says

The dispute involved a sweepstakes that awarded $1.2 million in Dogecoin, a digital exchange.

A 9th U.S. Circuit Court of Appeals panel ruled Friday that Coinbase Global Inc. cannot force customers into arbitration over claims the cryptocurrency exchange duped them into paying at least $100 in a sweepstakes last year.

Senior 9th Circuit Judge A. Wallace Tashima, writing for the panel, affirmed a decision by U.S. Magistrate Judge Sallie Kim of San Francisco denying Coinbase’s motion to force the plaintiffs’ case into arbitration.

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