Crypto stolen on Coinbase? Arbitration tips

Full transcript

0:10 Hi, I'm Max Dilendorf, a crypto attorney based in New York.

0:15 I've been practicing in crypto space since 2017, and since 2019, my firm has been one of the first in the nations to represent victims of exchange-related crypto theft and arbitration and litigation.

0:32 For more than five years, we've been helping clients navigate complex legal disputes against the US-based cryptocurrency platforms.

0:41 In this episode, we are talking about user agreements, the legal contracts you accept when opening an exchange account and how they often hold the key to pursuing your claim through arbitration.

0:56 If you are reported unauthorized activity to your exchange and they refuse to reimburse you, claiming they're not liable, your next step is to examine the user agreement.

1:08 In most cases, this document outlines the dispute resolution process and requires private arbitration as your only path forward.

1:20 I'll walk you through how to read and understand the key sections of the agreement so you can take the right legal steps from the very beginning.

1:30 Every US crypto change publishes a user agreement on its website, typically under legal or terms of use sections.

1:40 Once an exchange denies liability, your focus should turn to arbitration clause.

1:46 This is the section that outlines how disputes must be handled.

1:50 Almost always, it requires arbitration instead of filing a lawsuit in court.

1:56 It's critical to understand that user agreements are enforceable legal contracts, even if you didn't read the fine print before clicking accept.

2:06 By using the platform or exchange, you are legally agreed to its terms and conditions, courts and arbitrators consistently uphold them.

2:16 One of the first things to look is the notice requirement.

2:19 Many user agreements require you to send a written notice of your claim before you are even allowed to file for arbitration.

2:28 Depending on the platform, notice period could be 30, 45 or 60 days. You have to follow the exact method of delivery outlined in the agreement, usually email, certified mail or both, and read same proof.

2:44 Without submitting a proper notice you may not be permitted to initiate arbitration at all.

2:50 Next, identify the arbitration venue listed in the agreement. The three most common are American Arbitration Association, or AAA, Judicial Arbitration and Mediation Services JAMS, and National Arbitration and Mediation, or NAP. Each of these providers has its own set of rules, filing procedures, and fee schedules. Understanding which one applies to your case is crucial.

3:17 Missing a procedural staff can delay or completely derail your claim. Our law firm has experienced arbitrating cases in all three arbitration forms, which allows us to tailor your strategy to the specific procedures and nuances of each menu. Each arbitration form is different.

3:37 For example, AAA generally requires a formal demand submitted through its online portal and specifically develop rules for consumer claims.

3:51 JAMS often comes with higher fees, but provides access to more experienced arbitrators, especially in complex financial cases.

4:03 And NAM is used less, but still appears in some cryptocurrency change user agreements.

4:10 Once you know your arbitration venue, visit the provider's website and review their filing instructions.

4:18 Keep in mind, arbitration is not the same as court.

4:22 These forms often limit discovery, follow relaxed evidentiary standards, and decisions are usually fine with very limited rights to appeal.

4:33 That's why it's important to work with an experienced crypto attorney.

4:39 A qualified lawyer can assess the strength of your claim, draft an arbitration demand and guide you through then use specific procedures to avoid any missteps. In 2024 thousands of crypto-related disputes were filed in arbitration but outcomes depend heavily on preparation and legal strategy. The user agreement is your roadmap but navigating without half can be risky.

5:06 In episode 5 we'll cover how to actually file your arbitration demand and break down the associated fees.

5:15 Subscribe to our channel if you need help reviewing your agreement or preparing your case. Contact the crypto attorney for advice specific to your situation.

5:28 Thanks for watching and I will see you in episode 5.

A transcript of the recording, so it reads as speech rather than as prose. It explains the law in general terms and is not advice on your own situation, which turns on facts this video cannot know.