Customers of Coinbase are not releasing their account information, halting progress made to move their lawsuit to arbitration, according to a new emergency motion filed in a federal court.
A recent motion was filed in federal court that stated the plaintiffs would turn over the requested information in return for a protective order.
Coinbase opposed this agreement and requested a provision in the protective order that would allow the company to demand arbitration for the dispute.
With this issue still up in the air, Coinbase was unable to connect customers to their respective arbitration agreements.
Coinbase demanded a hearing due this renewed emergency motion.
The lawsuit alleges that crypto exchange Coinbase had neglected to secure customers' accounts, leaving them exposed to theft and unauthorized transfers.
It also accused Coinbase of financially harming users by blocking them out of their accounts, either permanently or temporarily, and failing to comply with federal regulations by listing securities on its trading platform.
The dispute has brought attention to known issues regarding lax cybersecurity measures of companies dealing with cryptocurrencies.
The crypto exchange has already brought multiple arbitration claims up to the U.S. Supreme Court.
Tomiwabold Olajide
Arman Shirinyan
Yuri Molchan