When a cryptocurrency exchange denies liability for stolen funds, arbitration is often the only legal path available. Many user agreements require it, and exchanges frequently use liability waivers and procedural defenses to avoid responsibility. Filing a demand for arbitration is the first formal step in pursuing your claim.
If you are preparing to take this step or if you’ve experienced losses due to crypto fraud on a trading platform, Meyer Wilson Werning can guide you through the process and help you avoid mistakes that could weaken your case. Reach out today to discuss your next steps with us.
Why Filing a Demand Matters
Arbitration is not informal, even if it may be faster than traditional litigation. Exchanges often respond aggressively with motions to dismiss, citing technical issues or pointing to liability waiver clauses in their user agreements. If your filing is incomplete or improperly framed, your case may never reach a hearing. This is why consulting an experienced attorney before submitting your claim is strongly advised.
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Steps to Filing a Demand with AAA
For exchanges that name the American Arbitration Association (AAA) in their user agreements, filing a demand involves several critical steps:
- Obtain the form: Visit adr.org and download the Consumer Demand for Arbitration form, located under “Rules, Forms, and Fees.”
- Explain the dispute: Provide a concise, factual summary of what happened. How you frame this section matters, as it should both establish your claim and anticipate likely defenses.
- State the amount in dispute: List the value of the crypto or fiat you are seeking to recover, typically limited to the U.S. dollar value at the time of loss. Include additional requested relief such as interest, attorney’s fees, or reimbursement of costs if permitted by law.
- Provide party details: Enter your contact information and, if represented, your attorney’s details. For the exchange, list its full legal name and service address as stated in the user agreement. Attach a copy of the agreement to confirm jurisdiction.
Completing these steps thoroughly and accurately is critical to avoid procedural setbacks.
Submitting and Initiating the Case
Once your demand is prepared, you must submit it formally. This involves:
- Uploading the completed form and supporting documents through AAA’s consumer case portal.
- Paying a non-refundable $225 filing fee, required when the consumer initiates the case.
- Receiving confirmation from AAA, which includes a case number and acknowledgment of your filing.
After submission, AAA assigns a case manager and sends an initiation letter to both parties. The exchange then has a limited time to file its response.
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Why Legal Guidance Is Essential
Although arbitration takes place outside the courtroom, it is still a legal proceeding with real consequences. Common risks include:
- Filing errors that prevent your case from moving forward.
- Overlooking critical evidence or claims in your initial demand.
- Facing dismissal motions from exchanges that rely on highly technical defenses.
Because arbitration awards are binding and generally not subject to appeal, you typically have only one chance to present your case correctly. An attorney familiar with crypto law and arbitration procedure can strengthen your claim and reduce the risks associated with filing on your own.
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How Meyer Wilson Werning Helps Investors File With AAA
At Meyer Wilson Werning, we represent investors nationwide in arbitration claims against crypto exchanges and financial institutions. From preparing your arbitration demand to managing discovery and responding to defenses, our team provides the knowledge and experience necessary to help you pursue recovery. Contact us today to discuss your situation and explore your path forward.
Frequently Asked Questions
What is a demand for arbitration?
A demand for arbitration is the formal document that starts your case against a crypto exchange. It explains your dispute, states the amount of money you seek to recover, and provides details about both you and the exchange.
Why is filing a demand so important?
Your demand sets the tone for the entire case. If it’s incomplete or poorly written, the exchange may use that to try to dismiss your claim before it ever reaches a hearing.
How do I file a demand with AAA?
You can download the Consumer Demand for Arbitration form from adr.org, complete it with the required details, and submit it through AAA’s consumer case portal. A $225 filing fee must also be paid to open the case.
What happens after the demand is submitted?
AAA will assign a case manager, provide you with a case number, and notify the exchange. The exchange then has a limited time to file its response, often including motions to dismiss or narrow the case.
Do I need an attorney to file a demand?
While it’s not required, having an attorney is strongly recommended. Arbitration is legally binding and appeals are rare, so working with an experienced attorney helps ensure your filing is accurate, strategic, and able to withstand the exchange’s defenses.
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