SCOTUS rules against Coinbase over 2021 Dogecoin sweepstakes

The Supreme Court of the US has delivered a verdict against Coinbase, citing that a court should decide where its dispute about the Dogecoin sweepstakes belongs. This means that arbitrators will not have a role to play here, and it will only be the court that does so. 

This situation occurs because both parties entered two contracts, with both contracts pointing in a different direction. One agreement stated that disputes would go to arbitration, while the other mentioned that disputes specific to sweepstakes would go to a court in California.

Coinbase had earlier claimed that such a ruling would invite chaos as it would encourage them to challenge the arbitrator agreement. The Court has rebuffed that claim by saying they do not believe such chaos will follow.

The verdict was delivered by Justice Ketanji Brown Jackson.

Justice Neil Gorsuch has emphasized that alternative facts could still come out the other way, adding that it ultimately depends on what both parties agreed to. This is not the first ruling in the case. The previous ruling was delivered in 2023 in Coinbase Inc. versus Bielsk case — proceedings in the trial court were halted until the arbitration question was washed out.

The case began when customers came out, claiming that they were duped into paying $100 to enter the sweepstakes segment.

Coinbase’s loss, in this case, has had some adverse effects on its stock valuation. Prices fell by more than 3.5% in mid-day trading. Paul Grewal, Coinbase’s Chief Legal officer, reacted by saying that they were grateful to have the opportunity to present their case to the Court and that they appreciate the Court’s consideration in this matter.

Nonetheless, Coinbase continues to function as usual, evident from the recent development of resuming XRP trading on the platform. The development was shared by Pau Grewal on X via post. The functionality is currently live in New York. It was suspended amid the lawsuit by the SEC against the company. This has done little for XRP at the moment, as the token is down by 0.12% in the last 24 hours. It is exchanging hands at $0.5256, up by 1.85% in the last 7 days and down by 4.03% in the last 30 days.

Ripple and the Commission could soon reach a settlement, or a conclusion, in the legal battle. This will give Ripple a larger option to expand the offering of XRP on several exchange platforms.

That said, the verdict in the Coinbase and Dogecoin sweepstakes may have had some implications for DOGE’s market performance. It has decreased by 2.19% in the last 24 hours and is listed at $0.1614. 

Coinbase announced the campaign as a promotional offer to welcome Dogecoin to the platform. It sought customers to participate by buying or selling Dogecoin for a hundred dollars or more between June 03 and June 10, 2021. Customers could also enter by handwriting a card to the promoter, an option not adequately advertised.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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