Coinbase users have File a class action Seeking USD 5 million in compensation for allegedly misleading Dogecoin activities.
In the legal documents, the plaintiff David Susky stated that he was deceived to trade 100 dollars of Dogecoin (dog) Participate in Coinbase’s 1.2 million USD lottery. The document claims that Coinbase failed to convey that a person can participate in the sweepstakes without purchasing $100 in Dogecoin.
On the first day of Dogecoin’s trading on Coinbase on June 3, 2021, the company sent users an email about the lottery with the content “Trade Dogs, Win Dogs”. The email contains detailed information on how to enter through the transaction, or if a person wants to go to a separate “rules and details” page, they will find that you can also enter by sending a 3×5 inch index card to Coinbase. The index card needs to write the customer’s name, address, email address, phone number and date of birth to enter.
In the document, the plaintiff claimed that the promotion was misleading because anyone can enter for free by mailing an index card containing the required information. It then claimed that the lottery advertisement was designed to “deceive and confuse” the plaintiff and other customers to trade $100 in Dogecoin to qualify for the competition. The document also stated that if the advertisement clearly states the 100% free entry option, the plaintiff will not give Coinbase $100 or pay a transaction commission to acquire Dogecoin because he already has 1,000 Dogecoin in another company’s account. The class action complaint states:
“The only reason the plaintiff promised to buy more Dogecoin from Coinbase was because the company convinced him that this was necessary to participate in Coinbase’s $1.2 million sweepstakes.”
The lawsuit represents Suski, the plaintiff, and millions of other Coinbase users seeking more than US$5 million in damages.