Payward Inc and others v Maxim Chechetkin  EWHC 1780 (Comm)
In a judgment handed down by Bright J on 14 July 2023, the Commercial Court refused to enforce an arbitral award made under the auspices of JAMS in San Francisco, California, on the grounds that it contravened English consumer protection which has the status of public policy under section 103 of the Arbitration Act 1996. Bright J also concluded that the arbitral award stifled Mr Chechetkin’s ability to advance a claim under FSMA 2000.
The underlying facts of this case concern losses incurred by Mr Chechetkin while trading financial products (referencing cryptocurrencies) on the Kraken cryptocurrency trading platform. Bright J’s judgment is likely to have wider implications for investors trading such products on other crypto-exchanges many of which have compulsory arbitration, exclusive jurisdiction and applicable law clauses which purport to exclude English law statutory protections.
Chloë acted with Henry Reid from Outer Temple Chambers and was instructed by Alexander Shirtcliff at Blake Morgan LLP.