Jeffrey Berk VS Coinbase: Court Says No
Coinbase gets a dismissal of the lawsuit claiming that damage befell investors when the BCH listing was manipulated by permitting insider trading.
Vince Chhabria, the American judge, ruled to dismiss the lawsuit against Coinbase by Jeffrey Berk, an Arizona resident. Berk asserted that investors were mistreated by Coinbase’s decision to permit internal trading of BCH before listing it on the exchange for higher prices.
It all started in March when Jeffery Berk alleged that some were tipped off about BTC’s listing and all of a sudden, Coinbase was swamped with transactions that obtained the prices of BCH at a stable price which affected the outsider market by hiking up the prices for external traders when it finally came to the listing.
The judge said that the filed complaints don’t have the legal foundation to support the allegations, without stating what was supposed to be done by Coinbase or had it followed Berk’s path of thinking, how would it have been able to effect the outsider market any differently.
Berk had all his on all his allegations against Coinbase rejected, but they came without prejudice, which opens a window for Jeffrey Berk and his lawyers to create and submit an amended complaint, a three week time window to be exact.
The accuser's allegations were based on the Act of Commodity Exchange, but Berk’s argument doesn’t have any grounds, as stated by Palley, a lawyer from AKO - Anderson, Kill, & Olick, PC.
Palley explained the judge’s dismissal without prejudice, alleging to get out of the European Court of Arbitration. “Just when there’s futures contract will the right to take an action to be viable under the CEA, and obviously this is not the case here,” says Palley.
This is outside the jurisdiction of the courtroom, as all virtual currency fraud allegations fall under the CFTC.
Berk’s main attorney, Lynda Grant, emailed her plan to update and submit another complaint to CoinDesk. Whereas Coinbase refrained from commenting on the topic.
After a considerable amount of time, Coinbase got the case dismissed, which is a triumph in and of its own, but that also came with a price; a stop-motion for Coinbase to request arbitration which left Berk in a single bench for arbitration instead of pushing it up to a full-fledged trial.
All investors sign a user agreement, and that’s why Coinbase claimed the prerogative to force arbitration according to that agreement Berk signed. That view, however, was dismissed by the judge but giving Coinbase a second chance after filing the edited complaint.
It was an unusual part of the ruling which makes my perception of the entire situation more plausible; "the case reveals a lot about the arbitration clause of Coinbase", said Palley.