Puja Ohlhaver

@pujaohlhaver.bsky.social

Law, economics, computation www.pujaohlhaver.com

Given the recent data breach and Coinbase’s user agreement that aims to force customers into arbitration rather than individual or class action lawsuits, it’s interesting to read the outcome of a recent arbitration case against Coinbase.

1. FACTUAL BACKGROUND 4. On January 5, 2024, Mr. Spilker filed a Demand for Arbitration with the American Arbitration Association (“AAA”) against Coinbase, Inc. seeking damages in the amount of $350,000 for withdrawal of staked cryptocurrency, allegedly without his authorization. Ex. A at 2. He alleged that he had been in contact with a “Coinbase Agent” and brought causes of action under the Electronic Funds Transfer Act, tort and common law, breach of contract, California law, Oregon and Idaho law, and federal commodities and securities laws. Ex. A at 2-3; Ex. B. 5. The User Agreement between Mr. Spilker and Coinbase, Inc. provided that the parties agreed to arbitrate any disputes, and that the arbitration would be “in accordance with the American Arbitration Association’s rules for consumer related disputes.” A true and correct copy of the User Agreement is attached hereto as Exhibit C. See Ex. C at § 7.2 (the parties’ agreement to arbitrate and agreement that an award may be enforce9. On December 17, 2024, Arbitrator Kruze issued an Order Granting Dispositive Motion as to all of Mr. Spilker’s claims. Ex. A at 6 (“Respondent’s Motion for Summary Judgment is GRANTED. Claimant’s claims against Coinbase are dismissed.”). 10. The Final Award holds: a. Claimant’s EFTA cause of action is time-barred because the “one-year limitations period begins when the first unauthorized transfer occurs, not upon discovery by the consumer, and not when the consumer notifies the defendant of the unauthorized transfer.” Id. at 3, applying 15 U.S.C. §1693m(g) and Wike v. Vertrue, Inc., 566 F.3d 590,593 (6th Cir. 2009). b. “The undisputed facts show that a third party, not Coinbase, caused Claimant’s damages” and that “Claimant’s damages were the result of an intervening and superseding cause: the actions of a third-party scammer. Coinbase, as a matter of law, cannot be held liable for Claimant’s damages.” Ex. A at 4, citing May v. Google, LLC, No. 24-CV-01314- BLF, 2024 WL 4681604, at *

Since AI x crypto agents seem poised to take over the world, I’m throwing this *draft* into the wild for public comment, critique, and ridicule: 🚀 Community Currencies: The Price of Attention & Cost of Influence ---or--- 💡 The Price of Entry & Cost of Exit papers.ssrn.com/sol3/papers....

Community Currencies: The Price Of Attention And Cost Of Influence In A Networked Age -or-The Price Of Entry And Cost Of Exit In A Networked Age

Human attention is our scarcest resource. What we pay attention to determines the information we process, and the influence we exert over outcomes. Together, at

papers.ssrn.com

Had a big eureka moment today—-the kind where the universe seems to fall elegantly into place and mysteries are no longer mysterious, but ordered complexity. Then I realized I had the same eureka a year ago and just entirely forgot about it. Not sure how I should feel about it.