Coinbase customer sues exchange for $5 million after “misleading” Dogecoin advert

  • A Coinbase customer is suing the firm for a misleading Dogecoin trading campaign and seeks $5 million in damages.
  • Elsewhere, Axe is set to launch a limited run of a DOGE-themed body spray known as “Dogecan” for US DOGE fanatics.

A Coinbase user has filed a class-action lawsuit against Coinbase, for an allegedly misleading Dogecoin campaign. According to the case’s legal document, the plaintiff David Suski reported being deceived by Coinbase to trade Dogecoin worth $100.

The legal document went on to state that Suski’s trading action was motivated by Coinbase’s $1.2 million sweepstakes offer. He further claims that the exchange failed to communicate purchasing $100 of Dogecoin as a non-requisite to entering the sweepstakes offer.

Details of the lawsuit against Coinbase

Earlier on June 3, 2021, Dogecoin became available for trading on the Coinbase crypto exchange. On the same day, the company sent out emails to its users about the sweepstakes. Part of the message read, “Trade Doge, Win Doge.”

Moreover, the email detailed that to enter the competition, users had to trade. Alternatively, it provided the option of sending Coinbase a 3×5-inch index card to participate in the competition. The index card had to have a customer’s details including name, address, email address, phone number, and date of birth. This second option, however, was placed on a separate “rules and details” page.

For this reason, the complainant alleged the campaign as misleading as it failed to highlight the free entry option. Furthermore, he alleges that the sweepstakes advertisement was devised to “deceive and confuse” him and other customers. Many customers were hoodwinked into trading $100 of Dogecoin to qualify for entry.

Additionally, the plaintiff says he would not have put $100 in Coinbase or paid the trading commission to acquire DOGE. More so, the plaintiff claims he already owned 1,000 Dogecoin in a separate account with a different company. However, the ads were not clear about the 100 percent free entry option.

An excerpt of the class action complaint reads:

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.

The lawsuit now seeks over $5 million in damages on behalf of the complainant besides millions of other Coinbase users.

Dogecoin and the crypto space

In other news, the Axe male grooming products company plans to launch a limited production of a DOGE-themed body spray. Consumers get a chance of acquiring the free “crypto scented” product dubbed “Dogecan” by registering on Axe’s website. The limited-run however, excludes DOGE fanatics outside the US. Already, the DOGE co-founder, who recently re-embraced the crypto community, has received an early sample.

These events follow as the price of DOGE hovers between $0.18 and $0.16. At press time, DOGE was worth $0.16 having shed 9 percent in the last 24-hours. The coin has also declined by about 76 percent since its May all-time high of $0.73, according to our data. Nevertheless, the DOGE volume has increased almost 13 times in Q2 to reach about $1 billion on daily average.

Read More: Dogecoin volume shot up 1,250% to $1B a day in Q2 as Elon Musk led a massive price rally

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A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself.”

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