OPINION & ORDER Plaintiff Laura Ventoso brings claims against Bill Shihara; Bittrex, Inc., the Delaware corporation for which Shihara serves as founder and CEO; and Bittrex, LLC, the predecessor corporation to Bittrex, Inc.1 The Complaint alleges common law fraud and violations of both New York’s Deceptive and Unfair Trade and Practices Act, N.Y. Gen. Bus. L. §349, and New York’s Civil Theft Statute, N.Y. Penal L. §155.05-155.40.Defendants move to compel arbitration of Ventoso’s claims. Defendants also move to dismiss Ventoso’s claims pursuant to Federal Rule of Civil Procedure 12(b)(1) or, in the alternative, to transfer this case to the U.S. District Court for the Western District of Washington pursuant to the forum selection clause in Bittrex’s Terms of Service. For the following reasons, the Court grants defendants’ unopposed motion to compel arbitration and stays the case pending the completion of arbitration.I. Background2A. The PartiesVentoso is an individual investor who resides in New York. Compl. 31. Bittrex is an online platform through which general consumers “exchange, invest, and trade digital cryptocurrencies, Tokens and Fiat currency of different denomination.” Id. 1. Bittrex, LLC, was incorporated in Nevada, and its successor, Bittrex, Inc., is incorporated in Delaware and has its principal place of business in Seattle, Washington. Id. 32. Shihara, a resident of Seattle, is the CEO and co-founder of Bittrex. Id. 31.Some of the assets exchanged through Bittrex qualify as securities in the United States. Id. 41. Bittrex is registered with the Financial Crimes Enforcement Network as a Money Services Business. Id. 42. Such businesses must comply with certain obligations such as maintaining “certain financial records and allow[ing] free and unfettered access to consumer accounts.” Id.Bittrex solicits members of the public to create Bittrex accounts; deposit various currencies, including both fiat and cryptocurrencies; and trade those currencies with other users. Id. 43. When a user creates an account, Bittrex designates three separate Bittrex-wallets, each keyed to a particular kind of currency, and consumers subsequently deposit various currencies exchanged on the platform into the wallet corresponding to that currency. Id.
44-45.B. The Terms of Service and the Arbitration AgreementTo buy and sell currency on Bittrex’s exchange, a prospective user must first register by creating a Bittrex account. Woley Decl. 4. Prospective users do so by visiting Bittrex’s website and clicking the “Sign Up” button. Id. 5. After entering a valid email address and creating a password, a prospective user has to check a box indicating agreement to Bittrex’s Terms of Service and Privacy Policy. Id. A prospective user cannot complete the registration process without checking that box.On April 11, 2018, Ventoso registered a Bittrex account. Batza Decl. 5. The operative Terms of Service at that time stated that “[b]y clicking on an ‘I Agree’ button or check box presented with these Terms or, if earlier, by accessing or using any Services, you agree to be bound by these Terms.” Terms of Service at 1. The first page of the Terms of Service also states in all capital letters: “THE ARBITRATION CLAUSE IN SECTION 18 GOVERNS RESOLUTION OF CERTAIN DISPUTES AND WAIVES ANY RIGHT TO TRIAL BY JURY OR TO PARTICIPATE IN A CLASS ACTION.” Id. Section 18 requires that, with one exception not applicable here, “all disputes, controversies or claims arising out of or relating to these Terms or the Services, will be resolved through confidential binding arbitration held in Seattle, Washington in accordance with the Streamlined Arbitration Rules and Procedures (“Rules”) of the Judicial Arbitration and Mediation Services (“JAMS”)….” Id. at 15.C. Ventoso’s ClaimsVentoso alleges that, on July 12, 2018, she deposited $120,000 with Bittrex. Compl. 50. In August 2018, she claims, Bittrex suspended her account and attempted to extort her by withholding the funds she had in her account unless she signed a contract relinquishing her right to sue Bittrex. Id.
