The post Dogecoin Sweepstakes Case Heads to the Supreme Court appeared on BitcoinEthereumNews.com.

A federal judge has denied Coinbase’s motion to force a lawsuit over its Dogecoin sweepstakes into arbitration, allowing the case to proceed in court. The lawsuit alleges the crypto exchange misled users about requirements to enter its 2021 “Trade Doge, Win Doge” promotion. Filed in 2021, the class action lawsuit accused Coinbase of obscuring the fact that users could enter the $1.2 million Dogecoin giveaway for free, without having to trade $100 of the meme cryptocurrency on its platform, reports Reuters. It is a separate legal action from the lawsuit against Elon Musk over alleged price manipulation. The Coinbase suit, led by plaintiff David Suski, argues that Coinbase deliberately concealed a free mail-in entry option in order to drive trading volume and liquidity for its new Dogecoin listing. “The official rules evince the parties’ intent not to be governed by the user agreement’s arbitration clause when addressing controversies concerning the sweepstakes,” wrote the Ninth Circuit in its decision to keep the claims in court, according to Law360, which affirmed that the U.S. Supreme Court will review the decision. This marks the second case over arbitration rules used by the crypto exchange to reach the high court in the past year. According to the lawsuit, Coinbase’s sweepstakes rules included a way to enter without payment by mailing in a 3×5 index card, as required by law. However, its promotional ad allegedly hid this option in faint, small print in order to push users towards paying the $100 entry fee. “Coinbase knew that sweepstakes entrants who learned that they could enter the sweepstakes for free… would choose to enter for free, rather than purchase $100 worth of Dogecoin,” reads the complaint. The lawsuit argues that Coinbase deliberately obscured the free entry method to drive trading volume for its new Dogecoin listing. The…

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Filed under: News - @ November 4, 2023 4:30 am