Recent attention has focused on how arbitration costs are allocated in consumer disputes involving Coinbase. Under the American Arbitration Association’s Consumer Arbitration Rules, individual claimants pay a capped filing fee, while companies bear the arbitrator’s fees and administrative expenses.
These costs can accumulate quickly, even in disputes involving modest amounts. Multiple conferences, procedural motions, or evidentiary hearings significantly increase expenses for corporate respondents.
This cost structure has practical implications for dispute resolution strategies, particularly in smaller claims where defense costs may exceed the amount in controversy.
