The post Coinbase Settles $2.25 Million Class Action Over Dogecoin Sweepstakes Allegations, Subject to Court Approval appeared on BitcoinEthereumNews.com.

Coinbase finds itself in hot water, agreeing to pay $2.25 million to settle a class action suit over a Dogecoin sweepstakes from 2021. This legal entanglement highlights ongoing regulatory scrutiny surrounding promotional practices in the cryptocurrency sector. “We are pleased to have reached an agreement to resolve the case, subject to the Court’s approval,” stated a Coinbase spokesperson. Coinbase settles a class-action lawsuit over a misleading Dogecoin sweepstakes, agreeing to pay $2.25 million to affected users. Key insights inside. Settlement Reached Over Misleading Dogecoin Sweepstakes In a significant legal development, Coinbase and marketing firm Marden-Kane have agreed to a settlement of $2.25 million in connection with a class action lawsuit. The suit arose from allegations that a Dogecoin sweepstakes launched in June 2021 contained misleading information regarding entry fees. The suit’s initiation traces back to claims that a critical detail was obscured, leading customers to believe they needed to make purchases to enter, which was not the case. Details of the Lawsuit and Allegations Plaintiff David Suski argued that the promotion erroneously implied that participation required a purchase. By entering the Dogecoin sweepstakes, participants were offered a grand prize of $300,000 and smaller prizes, despite the fact that the contest was free. Suski, who already held Dogecoin through another platform, claimed that he would not have invested in the cryptocurrency on Coinbase had he understood this key detail clearly. The class action encompasses all U.S. users who opted into the sweepstakes and executed a transaction involving $100 worth of Dogecoin during the promotion. If approved, users will receive compensation equivalent to the transaction fees incurred during their initial trades. Response and Implications for Customers The settlement aims to address the concerns of users who felt misled by the promotional material. Coinbase and Marden-Kane have consistently denied any wrongdoing, emphasizing that…

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Filed under: News - @ May 14, 2025 11:28 pm