Coinbase User Loses Challenge to Arbitration, Delegation Terms

A provision in Coinbase Inc.’s user agreement requiring arbitration of claims and delegating to an arbitrator any disputes arising out of the agreement is enforceable, the Ninth Circuit ruled, reversing the lower court’s ruling.

Abraham Bielski sued Coinbase under the Electronic Funds Transfer Act, alleging the company failed to investigate a scammer’s unauthorized transfer of $31,000 from his account. Coinbase moved to compel arbitration, arguing that under its user agreement, Bielski’s claims and any questions of arbitrability belong with an arbitrator, not the court. The trial court denied Coinbase’s motion to compel arbitration, finding the delegation provision and the …