Arbitration Crowdfunding

Arbitration has long been a preferred mechanism for resolving international commercial disputes. However, its cost often presents a barrier to access to justice. In response, crowdfunding has emerged as a potential solution, allowing claimants to raise funds through online platforms. This note explores the use of crowdfunding in arbitration, its ethical and practical challenges, and regulatory considerations.

What Is Crowdfunding?

Crowdfunding involves soliciting financial contributions from a large group of people, typically through an online platform. In legal disputes, crowdfunding can take the form of donations (where contributors expect nothing in return) or investments (where contributors anticipate a return upon a successful outcome). The model is attractive for claimants who lack the resources to pursue arbitration, offering a potential democratization of justice.