A Dogecoin (DOGE) fan sued the leading US crypto exchange Coinbase for allegedly “misleading” sweepstake ad campaign. The class action complaint seeks USD 5m in damages on the behalf of the plaintiff and other allegedly deceived Coinbase users.
David Suski, Coinbase user behind the complaint, stated that he was misled into trading USD 100 worth of DOGE tokens for a USD 1.2m sweepstakes entry offer on the exchange. The campaign, called “Trade Doge, Win Doge” was launched in June, shortly after DOGE was listed on the exchange. In the document, the plaintiff claims that he was tricked into trading DOGE because the exchange didn’t clearly disclose the procedure for entering the contest without having to trade DOGE, namely by mailing in an index card with the participant's name, address, and birthday.
According to him, the contest ad was deliberately designed to hide the section that details free entry requirements so that users increase DOGE liquidity on Coinbase. The document also added:
“Plaintiff did not see the Sweepstakes’ “rules and details” until after he had already given his money to Coinbase. This is because Defendants’ ads were specifically known and designed by Defendants to deceive and confuse Plaintiff and most other layperson-consumers into believing that they would have to trade DOGE on Coinbase to enter the Sweepstakes, and to further induce them into paying Coinbase on that false pretense before they were likely to view the Sweepstakes’ official “rules and details” to the contrary.”
Here is a copy of the ad as displayed in the complaint:
According to US sweepstakes rules and regulations, all legitimate sweepstakes are free and by chance, and it is illegal to require entrants to buy or pay to enter or to increase the odds of winning.
Cryptonews.com has contacted Coinbase for comment.
Regardless of how the case will turn out, Dogecoin has already lost more than half of its value since it was listed on Coinbase.
It's my honor & privilege to present to you....The entire history of $Doge on Coinbase pic.twitter.com/ER3LOwxRWD— Crypt0Jack (@ttvCrypt0Jack) July 20, 2021
At 11:41 UTC, DOGE, ranked 8th by market capitalization, trades at USD 0.165 and is down by almost 8% in a day and 21% in a week. _ Learn more: - 'Locked-Out' Users Sue Coinbase For North of USD 5M - Dogecoin Wannabes Flood The Market With Pumps & Dumps
- Dogecoin Co-creator’s Anti-Crypto Twitter Rant Met with Scepticism - BitClout Investors Coinbase & Blockchain.com Step Up Their Shilling Efforts