Coinbase Must Face Deception Claims Over Dogecoin Sweepstakes

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Jan. 12, 2022, 3:32 PM

Coinbase Inc. must face a proposed class action alleging that a $1.2 million Dogecoin sweepstakes violated California consumer law because entrants might not have been aware they didn’t have to buy or sell the cryptocurrency to win a prize, a federal court in the state said.

Coinbase users David Suski, Jaimee Martin, Jonas Calsbeek, and Thomas Maher alleged the June 2021 sweepstakes violated various California sweepstakes and lottery laws. These violations gave rise to their claims under consumer protection statutes.

The U.S. District Court for the Northern District of California advanced some claims but narrowed the scope of their lawsuit, …