August 9, 2019 U.S. Federal Judge rules Coinbase must face lawsuit over alleged negligence related to its listing of Bitcoin Cash in 2017, denying motions to move the case to arbitration.

While dismissing accusations of insider trading, Judge Vince Chhabaria stated that “Coinbase indeed had a duty to maintain a functional marketplace,” which it may have violated by failing to prevent BCH price swings. Coinbase will likely need to prove it took reasonable measures to mitigate foreseeable harm to customers; if Coinbase fails to do so, the case could potentially set precedent requiring virtual asset service providers to uphold stricter standards of care under existing U.S. tort laws.