Due to a reportedly false Dogecoin campaign, a Coinbase customer has sued the company and demanded $5 million in damages.
The complainant, David Suski, claims he was duped into trading $100 worth of Dogecoin (DOGE) for a chance to win $1.2 million in a Coinbase sweepstake. According to the lawsuit, Coinbase neglected to inform customers that they may participate in the sweepstake without spending $100 in Dogecoin.
The firm sent out an email to subscribers about the sweepstakes on the first day Dogecoin was accessible for trading on Coinbase, June 3, 2021, with the subject line “Trade Doge, Win Doge.” The email included instructions on how to join by trading or by mailing Coinbase a 3×5-inch index card, which could be found on a separate “rules and information” page. To register, the customer’s name, address, email address, phone number, and date of birth had to be typed on the index card.
The plaintiff claims in the document that the sweepstakes promotion was deceptive since anybody could join for free by sending in an index card with the needed information. It then claims that the sweepstakes advertising was intended to deceive and mislead the plaintiff and other consumers into trading $100 in Dogecoin to be eligible for participation.
According to the complaint, the plaintiff would not have provided Coinbase $100 or paid the fee for the trade to purchase Dogecoin if the advertising had publicly stated about a 100 percent free admission alternative. He also added that he already possessed 1,000 Dogecoin in an account with another firm. According to the class action complaint:
“The only reason that Plaintiff undertook to buy more Dogecoins from Coinbase was because the Company led him to believe that doing so was necessary to enter Coinbase’s $1.2 million Sweepstakes.”
Suski, the plaintiff, and millions of other Coinbase customers are seeking upwards of $5 million in losses in the case.