A Canadian’s Failed Attempt to Sue Coinbase Reveals Big Legal Risks Hidden in User Agreements (Shirodkar v. Coinbase)
Can Canadian crypto users sue global platforms like Coinbase while in Canada? A recently decided case dives deep into cross-border crypto litigation.
Suing a global crypto giant like Coinbase sounds simple until you learn your case might land in another country. This post unpacks a fascinating Canadian lawsuit, between Shirodkar v. Coinbase Global, Inc., that reveals how user agreements, jurisdiction clauses, and fine print can completely reshape where and how you get justice. Whether you trade crypto casually or daily, this case might just change the way you click “I agree” when buying crypto.
🏛️ Court: Court of Appeal for Ontario
🗓️ Judgment Date: 24 March 2025
🗂️ Case Number: 2025 ONCA 298
⚖️ Legal Issues Explained
Imagine you buy Bitcoin or another cryptocurrency online through a global company like Coinbase in Ontario, Canada. Later, you realize something went wrong. Maybe the company didn't follow local laws, or your rights weren't protected as they should have been.
Now, here's the tricky part: can you sue the company here in Ontario 🇨🇦, or do you have to fly halfway across the globe to e.g., Ireland or somewhere else to get justice?
That's exactly the legal puzzle in this case.
The main legal question is whether Ontario courts have the right (or “jurisdiction”) to hear disputes involving international cryptocurrency platforms operating mostly online.
Specifically, the court must decide if simply accessing a global website from your computer in Canada is enough to make Ontario the proper jurisdiction for your lawsuit.
Also, does signing online user agreements, which usually have fine print saying disputes must be settled in another country, prevent you from taking legal action locally?
These legal issues affects anyone using international websites or apps to trade crypto assets.
💡 Material Facts from Shirodkar v Coinbase Case
🔹 Shantanu Shirodkar, the plaintiff, used Coinbase, a popular global platform for buying and selling cryptocurrencies like Bitcoin and Ethereum. Initially, Shirodkar opened his Coinbase account while living in France 🇫🇷, signing an agreement with Coinbase UK Ltd, which is now dissolved and not involved in this lawsuit.