Judge Denies Motion to Vacate Award, Sides with Coinbase

On Wednesday, March 11, 2026, the United States District Court for the Southern District of New York granted a petition by Coinbase, Inc. and Toshi Holdings Pte. Ltd. to confirm an arbitration award against Stacey Cohen. Judge Jeannette A. Vargas presided over the case, issuing a Memorandum Opinion and Order that also denied Cohen’s motion to vacate the arbitration award.

The legal dispute originated from an incident on March 14, 2023, when Cohen attempted to swap cryptocurrency using Coinbase Wallet. She claimed that she intended to exchange her holdings of 527,061.274 shares of Wolf Game Wool (WOOL), which were quoted at $0.93 per share for a total value of $480,033.63, for Ethereum (ETH). However, after executing the swap, Cohen received only 4.356 ETH, worth approximately $7,400 at the time, significantly less than the expected amount.

Cohen subsequently filed a Demand for Arbitration with the American Arbitration Association (AAA) on August 11, 2023, asserting seven claims against Coinbase and Toshi Holdings, including fraud and breach of contract. She sought damages amounting to $472,633.63. Arbitrator Patricia P. Hollenbeck was appointed to adjudicate the dispute.

On December 10, 2024, Arbitrator Hollenbeck ruled in favor of Coinbase and Toshi Holdings, denying all of Cohen’s claims with prejudice. The arbitrator emphasized that Cohen had authorized a minimum “buy” amount of 4.23 ETH for the swap and that Coinbase Wallet’s Terms of Service (TOS) limited the company’s liability for damages caused by third-party information. The arbitrator also noted that Cohen had received warnings during the swap process indicating that the price was “significantly different than the market rate.”

In her opposition, Cohen sought to vacate the award, alleging that the arbitrator was biased and corrupt in favor of the Petitioners. However, the court found that Cohen’s motion to vacate was time-barred under the Federal Arbitration Act (FAA), which requires such motions to be filed within three months of the award being issued. Since the award was issued on December 10, 2024, Cohen’s motion, filed nearly a year later, was deemed untimely.

The court concluded that Coinbase and Toshi Holdings had demonstrated that no genuine issue of material fact remained and that the arbitrator’s decision had a “barely colorable justification.” Accordingly, the court granted the Petition to confirm the arbitration award and denied Cohen’s motion to vacate.

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