When pursuing arbitration against a U.S.-based cryptocurrency exchange, selecting the right arbitrator is one of the most important decisions you will make. Unlike a courtroom trial, which involves a judge or jury, arbitration relies on an arbitrator whose ruling is binding and allows almost no appeal. That makes the choice of arbitrator critical.
At Meyer Wilson Werning, we guide investors through this process to improve their chances of securing a fair outcome. This guide will help you understand what is involved with this process, how critical it is that an attorney completes it, and what we will do for you when working on your case. If you’ve experienced losses due to crypto fraud on a trading platform, explore your legal options—contact our team today to start the arbitration process and pursue recovery.
Understanding the Arbitration Process
The process begins when you file a demand for arbitration with a forum such as the American Arbitration Association (AAA). AAA is a common formum used for cryptocurrency disputes. After filing, you must formally request a list of arbitrators. AAA typically provides each party with a list of five potential candidates.
Why This Step Matters
This stage is crucial because you have a chance to evaluate each arbitrator’s background before anyone is appointed. Each arbitrator’s profile will include:
- Professional background and specialties.
- Case experience and prior rulings.
- Stated areas of industry knowledge.
For cryptocurrency disputes, the right arbitrator should have experience with financial fraud, blockchain, and cybersecurity—not a background limited to unrelated areas such as construction law or insurance defense.
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Common Mistakes in Choosing an Arbitrator
Many investors make avoidable errors during this process, which can limit their control over who decides their case.
Letting AAA Assign Automatically
If you don’t request and pay for the arbitrator list, AAA may assign someone by default. This eliminates your ability to evaluate qualifications and strike unsuitable candidates.
Failing to Strike and Rank Candidates
Once the list arrives, each side can strike up to two names. The remaining arbitrators are then ranked in order of preference, and AAA appoints the highest-ranked mutual choice. If there is no overlap between the parties, a second list can be requested, but this delays the process.
Failing to actively participate in striking and ranking leaves too much to chance and risks ending up with someone who lacks the expertise needed for crypto-related claims.
Evaluating Arbitrator Qualifications
Selecting the right arbitrator is not just about eliminating bad options—it’s about proactively choosing someone who can fairly evaluate the complexities of crypto disputes.
- Relevant Case Experience – Look for arbitrators who have overseen financial fraud or cryptocurrency-related cases.
- Technical Knowledge – Understanding blockchain, cybersecurity, and digital asset mechanics is essential for interpreting evidence.
- Red Flags – Avoid arbitrators with little to no financial background, a history of rulings skewed heavily toward financial firms, or patterns suggesting potential bias.
Working with an experienced attorney can make this review more effective. Attorneys familiar with arbitrator profiles and prior decisions can help identify candidates who are more likely to be fair to investors.
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Timelines and Practical Considerations
Cryptocurrency arbitration can move more quickly than litigation, but delays are common. The arbitrator selection process alone often takes two to four months, depending on objections, scheduling conflicts, or AAA backlogs.
This timeline makes early and strategic preparation essential. By promptly requesting the list, carefully reviewing arbitrators, and working with your attorney on ranking strategies, you can minimize delays and maximize the chances of appointing a qualified decision-maker.
For more on the arbitration process, watch our video below:
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How Meyer Wilson Werning Helps Crypto Investors Find An Arbitrator
The arbitrator’s decision will likely determine the outcome of your case—and that decision is almost always final. At Meyer Wilson Werning, we help investors evaluate arbitrator lists, spot red flags, and make strategic selections during the strike-and-rank process. Our team is here to help guide you through the recovery process, ensuring you understand your rights and options. Contact us today, and let’s explore how we can work together to find a path forward that feels right for you.
Frequently Asked Questions
Why is choosing the right arbitrator so important in cryptocurrency arbitration cases?
Because arbitration decisions are binding with almost no appeal, the arbitrator’s ruling typically decides the outcome. Selecting a qualified arbitrator with financial fraud or crypto experience can significantly affect your case.
How does the American Arbitration Association (AAA) arbitrator selection process work?
After filing, both sides usually receive a list of five candidates. Each party can strike names and rank the rest, with AAA appointing the highest-ranked mutual choice.
What mistakes do investors often make when selecting an arbitrator in crypto disputes?
Common errors include letting AAA assign someone automatically, failing to strike unsuitable candidates, and not reviewing qualifications closely. These mistakes can leave investors with arbitrators lacking financial or crypto expertise.
What qualifications should investors look for in an arbitrator handling cryptocurrency cases?
Strong candidates have experience with financial fraud, blockchain, and cybersecurity, plus a record of fair rulings. Avoid arbitrators with little financial background or a history of bias toward firms.
How long does the arbitrator selection process usually take in cryptocurrency arbitration?
Selection typically takes two to four months, depending on strikes, objections, and AAA backlogs. Early preparation and strategic ranking help minimize delays.
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