- Coinbase faces legal charges for an allegedly misleading ad campaign.
- The ad was for a $1.2 million sweepstakes Dogecoin offer on the platform.
- Damages could be more than $5 million in compensation.
Coinbase is currently facing a class-action lawsuit from one of its users. The lawsuit is seeking $5 million in damages. Coinbase is accused of cheating millions of its users into buying Dogecoin for one of its Dogecoin campaigns.
In detail, a Coinbase user — David Suski, says that the exchange is guilty of deceiving its users into trading $100 of Dogecoin (DOGE). Specifically, he is referring to a $1.2 million sweepstakes offer on Coinbase.
In particular, the document for the sweepstakes allegedly fails to mention an important fact. This was that a user could enter the sweepstakes without having to purchase $100 worth of DOGE. We can trace this fact back to June 3, 2021 when DOGE first arrived on the exchange.
On this day, the brand sent an email to all its users talking about the sweepstakes. It said ‘Trade Doge, Win Doge’. The email came with other details such as how to join the campaign. It also linked a separate ‘rules and details’ page where they would find more information.
Here, it also said that users could enter by sending Coinbase a 3X5-inch index card. Moreover, the index card had to have the person’s name, email address, phone number, address, and date of birth. This information was mandatory to enter.
Therefore, Suski is suing Coinbase for alleged misinformation on its campaigns promoting the sweepstakes. It was clear that the email said anyone could for free with an index card. However, the ad campaign implies that one needs to buy $100 of Dogecoin to join.
Accordingly, Suski says that if it was made clear in the ad about free entry then he would not have spent $100 to buy DOGE as he already had 1,000 DOGE in an account with another company.
In conclusion, the class action complaint is clear, Suski would not have bought more DOGE from Coinbase if Coinbase’s ad for the sweepstakes had been more clear. Hence, the lawsuit aims to gain over $5 million in damages for both Suski as well as millions of other Coinbase victims.
- Panic Selling Leads to Another Dip in Bitcoin Price
- New Jersey AG Orders Cease-and-Desist to BlockFi
- Turkey Completes a Crypto Bill Draft – Ready for Parliament
- Verifying Counterparties for Online Transactions Using Background Checks
- WiV, A Blockchain-Based Technology To Develop Georgian Wine’s Global Presence