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Coinbase faces a class action lawsuit over the DOGE lottery

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The leading US crypto exchange is facing serious lawsuit from a Dogecoin fan for an allegedly misleading lottery advertising campaign. A class action lawsuit by several deceived Coinbase users is seeking damages $ 5 million.

A misleading campaign from Coinbase?

Behind this mass complaint is David Suski, who stated that he had been explicitly misled, when he exchanged his $ 100 DOGE tokens for a $ 1.2 million lottery entry offer. The Coinbase Exchange came up with a campaign called Trade DOGE win DOGE, which was officially launched in June, shortly after Dogecoin was listed on Coinbase. The document received by the court states that the users were deceived and forced to trade Dogecoin. The Exchange has demonstrably not published the procedure for participating in the competition without traders having to trade DOGE.

The applicant further claims that the campaign was deliberately designed to conceal the part of the free entry requirements in order to increase the liquidity of Dogecoin.

Coinbase lottery.  Source: Coinbase
Lottery Trade DOGE, win DOGE. Source: Google

“The plaintiff saw the rules and details of the lottery only after handing over the money to Coinbase. This is because lottery advertising has been deliberately designed to confuse and deceive lottery participants. They were influenced by fraudulent advertising and believed that they were obliged to trade DOGE on Coinbas in order to participate in Sweepstakes. However, the official rules and details that appeared to users after payment claimed the opposite. “

Lottery information.  Source: Coinbase
Lottery information. Source: Google

Under the rules and regulations in force in the United States, all legitimate lotteries are free and incidental, and it is illegal to require entrants to pay to participate, increasing their chances of winning.

The merger of the stock exchange and Dogecoin therefore does not have a very positive beginning. DOGE has lost more than half of its value since it was listed on the stock exchange.

Disclaimer: This article is for information purposes only and should not be construed as investment advice.
All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

1 thought on “Coinbase faces a class action lawsuit over the DOGE lottery

  1. Pingback: Sweepstakes Law - NYC Bar Association’s CLE Program on Marketing and Advertising Law - Techy Awaken

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