Sultan v. Coinbase, Inc.

FREDERIC BLOCK, Senior United States District Judge

In this diversity action, Ezra C. Sultan alleges that Coinbase, Inc., an online exchange for digital currencies like Bitcoin, negligently failed to prevent a scam that allowed a third party to steal more than $200,000 from his account. Coinbase moves to compel arbitration pursuant to a mandatory arbitration clause in its user agreement. For the following reasons, the motion is granted.

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"In deciding motions to compel, courts apply a 'standard similar to that applicable for a motion for summary judgment.' " Nicosia v. Amazon.com, Inc. , 834…