A federal judge has denied Coinbase’s motion to force a lawsuit over its Dogecoin sweepstakes into arbitration, allowing the case to proceed in court. The lawsuit alleges the crypto exchange misled users about requirements to enter its 2021 “Trade Doge, Win Doge” promotion.

Filed in 2021, the class action lawsuit accused Coinbase of obscuring the fact that users could enter the $1.2 million Dogecoin giveaway for free, without having to trade $100 of the meme cryptocurrency on its platform, reports Reuters. It is a separate legal action from the lawsuit against Elon Musk over alleged price manipulation.

The Coinbase suit, led by plaintiff David Suski, argues that Coinbase deliberately concealed a free mail-in entry option in order to drive trading volume and liquidity for its new Dogecoin listing.

“The official rules evince the parties’ intent not to be governed by the user agreement’s arbitration clause when addressing controversies concerning the sweepstakes,” wrote the Ninth Circuit in its decision to keep the claims in court, according to Law360, which affirmed that the U.S. Supreme Court will review the decision. This marks the second case over arbitration rules used by the crypto exchang

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Author: Decrypt AI, Edited by Ryan Ozawa

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