Straight Talkin' Breakdown
Coinbase Resolves Lawsuit over Dogecoin Contest Allegations
Coinbase, the popular crypto exchange, along with marketing firm Marden-Kane, have agreed to cough up a hefty $2.25 million to settle a long-standing class action lawsuit. The gripe? A sketchy, misleading Dogecoin sweepstakes that had users seein' red!
According to court docs, this multi-million settlement will compensate U.S. Coinbase users who took part in the Dogecoin sweepstakes and traded a cool hundred bucks worth of Doge during a week-long period back in June 2021.
Launched alongside Dogecoin's Coinbase debut, this festive promo promised a $300k grand prize with smaller prizes thrown in, and offered free entry to all! But a link on the exchange's website sneakily hid this little gem in small, faint text, according to upset customer David Suski.
Suski claimed he'd've skipped the Coinbase Doge purchase if he'd known the sweepstakes was free, seeing as he already held some Doge on Robinhood. He sought a cool $5 million in damages.
Coinbase's spokesperson responded with a "we're happy to have the case resolved, pending court approval."
Each settlement member will receive the transaction fees and "spreads" Coinbase charged on their initial $100 worth of Dogecoin trades during the sweepstakes' run. With an estimated $1.3 million in fees generated from users during that brief period, it's no party for Coinbase or Marden-Kane, the Syosset, NY marketing agency handling the sweepstakes.
Marden-Kane has yet to comment on the settlement. The case was weighed by the Supreme Court last year, which denied Coinbase's request for arbitration.
Amid shadowboxing between the U.S. and China, Dogecoin's price recently sat around $0.23, a 3.2% decrease in a day. But it surged 34% over the past week. On June 3, 2021, the day the Dogecoin sweepstakes began, Dogecoin traded at a whopping $0.39. Shortly before, its price peaked at $0.69, following Elon Musk's much-hyped SNL appearance.
In a separate lawsuit, Musk was accused of misleading statements leading to immense financial losses for investors. This lawsuit, which sought a colossal $258 billion in damages, was dropped mid-November.
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Disclaimer: All information is presented for entertainment purposes only. MFWG makes no guarantees of accuracy, reliability, or completeness. Always do your research before trading digital currencies. Sources: 1. Coinbase, Marden-Kane Settlement to Resolve Dogecoin Class Action Lawsuit 2. Coinbase Faces $5 Million Class Action Lawsuit Over Dogecoin Sweepstakes 3. Coinbase, Marden-Kane Reach $2.25 Million Settlement on Dogecoin Sweepstakes Lawsuit 4. Coinbase, Marden-Kane Settle Dogecoin Sweepstakes Lawsuit for $2.25 Million
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- After a long-standing court case, Coinbase, the popular cryptocurrency exchange, and marketing firm Marden-Kane will pay a total of $2.25 million to settle a class action lawsuit over a Dogecoin sweepstakes that took place in June 2021.
- In addition to the settlement amount, compensation will be provided to U.S. Coinbase users who participated in the Dogecoin sweepstakes and traded at least $100 worth of Dogecoin during the week-long promotion.
- The lawsuit, initiated by customer David Suski, claimed that Coinbase deceptively offered free entry into the Dogecoin sweepstakes by hiding the free entry detail in small, faint text on the exchange's website.
- The settlement is subject to court approval and each settlement member will receive the transaction fees and "spreads" Coinbase charged on their initial Dogecoin trade during the sweepstakes' run.
