Coinbase, the leading US exchange, has suffered a defeat in the Supreme Court, losing its arbitration dispute that revolves around a Dogecoin sweepstakes. 

Users accused the trading platform of false advertising, claiming that they were duped into shelling out $100 for the sweepstakes. 

"What a week. Some you win. Some you lose. We are grateful for having had the opportunity to present our case to the Court and appreciate the Court's consideration of this matter," Coinbase's top lawyer Paul Grewal said on the X social media. 

The exchange wanted to compel arbitration since it is much easier for businesses to resolve the matter without going through court litigation. 

Coinbase users agreed that disputes should be resolved through arbitration. However, the Dogecoin sweepstakes case caused a legal headache for Coinbase since a separate agreement stipulated that any disputes related to this specific contest should be resolved in a California courtroom. The user agreements arbitration provision contradicted the forum selection clause for the contest. 

The US of Appeals for the Ninth Circuit ruled against Coinbase, affirming a decision that was made by a federal judge in California before that. 

The Supreme Court agreed to hear the dispute back in November after Coinbase moved to appeal a ruling by a lower court. 

While the justices did not explicitly side with the 9th Circuit, they unanimously ruled that Coinbase was in the wrong. 

The Supreme Court rejected Coinbase's claim that not allowing it to force arbitration would cause chaos. 

See Also :