Coinbase faces allegations of fraud over a Dogecoin competitors – Bloomberg Regulation

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Jan. 12, 2022, 3:32 p.m.

  • Participants may not have known that they could do this for free
  • Forum selection clause replaces previous arbitration provision

Coinbase Inc. is facing a proposed class action lawsuit alleging that a $ 1.2 million Dogecoin sweepstakes is in violation of California consumer law because contestants may or may not know they weren’t buying the cryptocurrency had to sell to win a prize, a federal court in the state said.

Coinbase users David Suski, Jaimee Martin, Jonas Calsbeek and Thomas Maher alleged that the June 2021 sweepstakes violated various California sweepstakes and lottery laws. Consumer protection claims arose from these violations.

The U.S. District Court for the Northern District of California has made some claims but has narrowed the scope of their action …

© 2022 The Bureau of National Affairs, Inc.

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