TL;DR Breakdown
- Angry Dogecoin enthusiast David Suski allege Coinbase of false and misleading sweepstakes
- Suski notes that Coinbase hide free entry option for sweepstake participants
- Coinbase is yet to comment on allegations
An angry Dogecoin enthusiast has dragged top American crypto exchange firm, Coinbase to court in a $5 million class-action lawsuit.
The Dogecoin enthusiast claims the crypto giant misled him and others to pay and enter into a sweepstake to win the novelty cryptocurrency that they could have entered for free.
In his complaint filed before a San Francisco federal court, David Suski, the Dogecoin enthusiast, stated that he paid $100 to enter Coinbase’s “Trade Doge, Win Doge” contest launched in June.
The Dogecoin enthusiast claimed he was not going to pay if coinbase said clearly that there was another way to enter the contest, which includes by mailing in a 3×5 index card with the participant’s name, address, and birthday.
He noted in his suit that the marketing firm hired by Coinbase used “false and misleading” tactics to disguise the free-entry option. The dogecoin enthusiast in his lawsuit held that a link to the sweepstake rules was published in small, faint text.
Despite just requiring $100 or possibly to enter free, the grand prize was $300,000 and numerous smaller awards comprising of $30,000 to $100.
What the law says and Dogecoin enthusiast’s argument
Sweepstake laws has it that firms must have a way participants can enter for free. However, firms also design the contest such that some participants can enter through other means, including payment.
However, for Suski, the Dogecoin enthusiast, Coinbase unfairly hid the free entry option purposely to improve liquidity. He adds that both Coinbase and the marketing firm he sued and Coinbase knew what they were doing.
Coinbase opinion on the lawsuit
Although, apart from Suski’s lawsuit, the Sweepstake and Coinbase has been a trendy topic on Reddit, especially as they announced the winner would be selected June 17, and the firm said it would contact the winner directly.
However, Coinbase are yet to say anything on the lawsuit so far.
