Morrison Cohen Secures Arbitration of Claims Against Exodus in Digital Assets Dispute

On September 30, 2026, Morrison Cohen secured an order compelling arbitration of claims brought against its client, Exodus Movement Inc., reinforcing the bedrock principle that a plaintiff who agreed to an unambiguous arbitration clause must arbitrate her claims.

Morrison Cohen represents Exodus in Levy v. Exodus Movement Inc., Case No. 1:25-cv-02975, in the U.S. District Court for the Eastern District of New York. Exodus is a software developer that offers software allowing users to self-custody their own digital assets. The plaintiff alleged an incident in which digital assets were deposited into and withdrawn from her Exodus wallet without her authorization. Even though the plaintiff’s allegations indicated that she was a victim of theft by an unknown third party, the plaintiff sought to hold Exodus liable.

Morrison Cohen moved to compel arbitration pursuant to Exodus’s Terms of Service. Judge Pamela K. Chen granted the motion, holding that the plaintiff agreed to a valid and enforceable arbitration provision. The Court found that the Terms were sufficiently conspicuous and that the plaintiff manifested her assent through Exodus’s account-creation process. In particular, the Court explained that the Terms were presented “at the point of enrollment in the service,” and that Exodus expressly warned users that by downloading the application and creating a wallet, they were agreeing to be bound by the linked Terms. The Court also held that the broad arbitration provision encompassed the plaintiff’s claims because the dispute concerned her use of Exodus’s software and her relationship with Exodus.

The Court rejected as “conclusory” and “unsubstantiated” the plaintiff’s argument that she had never agreed to arbitration. The Court further rejected the plaintiff’s argument that the arbitration provision was unconscionable or that Exodus waived its right to compel arbitration. Finally, the Court rejected the plaintiff’s “facial attack on arbitration as an alternative forum for dispute resolution that does not undermine the parties’ agreement to arbitrate.”

The Morrison Cohen team was led by Jason Gottlieb, Michael Mix and Rachel Rothman.