Coinbase and marketing firm Marden-Kane have agreed to pay $2,250,000 to settle a class action lawsuit regarding an allegedly misleading Dogecoin sweepstakes from 2021. The lawsuit, initiated in June 2021, alleged that the sweepstakes, which featured a prize pool of $300,000, contained insufficiently clear details that obscured the fact that entry was free. Coinbase users who participated in the sweepstakes by trading $100 worth of Dogecoin will receive compensation for transaction fees incurred during that period. The court had previously rejected Coinbase's attempts to move the case to arbitration, allowing it to proceed in court. David Suski, the plaintiff, claimed that he would not have purchased Dogecoin on Coinbase had he known there was no cost to enter the contest. Despite the settlement, both Coinbase and Marden-Kane denied wrongdoing in the case. The court's approval of the settlement is pending, and it is expected to provide some restitution to affected users. The lawsuit had gained significant attention as it highlighted issues of transparency in cryptocurrency giveaways and promotions.

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