An enraged Dogecoin supporter has filed a $5 million class-action lawsuit against Coinbase, a leading American cryptocurrency exchange.
The Dogecoin fan alleges that the crypto giant duped him and others into paying to enter sweepstakes to win the novelty cryptocurrency when they could have done so for free.
The Dogecoin supporter stated that he would not pay until Coinbase said explicitly that there was another method to enter the contest, which included mailing in a 35-inch index card with the participant’s name, address, and birthdate.
In his lawsuit, he claims that Coinbase‘s marketing company used “false and deceptive” techniques to hide the free-entry option. In his complaint, the Dogecoin enthusiast claimed that a link to the sweepstakes regulations was printed in small, weak type.
Even though entry was just $100 or potentially free, the top prize was $300,000, with several lesser rewards ranging from $30,000 to $100.
What the law says and what Dogecoin supporters argue
According to sweepstakes legislation, businesses must provide a method for people to enter for free. On the other hand, firms construct contests such that sure participants can participate via alternative methods, such as money.
Coinbase, on the other hand, unfairly concealed the free entrance option for Suski, a Dogecoin fan, to increase liquidity. He says that both Coinbase and the marketing agency he sued, as well as Coinbase, were well aware of what they were doing.
On the lawsuit, Coinbase has an opinion
Apart from Suski’s complaint, the Sweepstakes and Coinbase have been a popular subject on Reddit, notably after they stated the winner would be chosen on June 17 and that the company would contact the winner personally.
Coinbase, on the other hand, has yet to comment on the complaint.