US Supreme Court Takes on Lawsuit Involving Dogecoin Sweepstakes
The United States Supreme Court has decided to hear a lawsuit concerning a Dogecoin sweepstakes involving Coinbase and its customers. This comes after the US District Court for the Northern District of California initially denied Coinbase’s motion to move the class-action lawsuit to arbitration. The lawsuit, filed in 2021, alleges that Coinbase intentionally hid the fact that customers could enter the “Trade Doge, Win Doge” giveaway without trading $100 of the meme coin on its platform. The exchange is accused of concealing a free mail-in entry option to boost the trading volume and liquidity of Dogecoin.
Court Rules in Favor of Plaintiff in Sweepstakes Case
A federal judge in California, supported by the 9th U.S. Circuit Court of Appeals, recently upheld the decision that a prior sweepstakes agreement requiring resolution in a traditional courtroom should take precedence. The class action is led by David Suski, a Coinbase user who claims he would not have paid $100 to participate in the Dogecoin giveaway if the free entry option had been adequately disclosed. The lawsuit seeks over $5 million in damages for participants who paid the entry fee.
David J. Harris, Suski’s Counsel, expressed hope that the court would hold Coinbase accountable to its own contracts with consumers.
Coinbase Battles SEC Over Securities Law Violations
In another legal battle, Coinbase continues to fight against the United States Securities and Exchange Commission (SEC) over alleged violations of securities laws. The SEC charged Coinbase in June for offering certain crypto assets classified as securities without proper registration. In response, Coinbase argued in a court filing that the SEC is exceeding its authority and has too broad a definition of what qualifies as a security. The cryptocurrency firm is seeking to dismiss the SEC’s lawsuit.
Dogecoin price at $0.06886 on the daily timeframe | Source: DOGEUSDT chart on TradingView
Hot Take: Supreme Court Decision Signals Shift in Crypto-Legal Landscape
The decision by the United States Supreme Court to review the Dogecoin sweepstakes case is a significant moment in the crypto-legal space. It highlights the importance of courtroom litigation, as large companies often prefer arbitration for its cost-effectiveness and efficiency. This development could have far-reaching implications for future legal disputes involving cryptocurrencies and may shape the regulatory framework for the industry. Additionally, Coinbase’s ongoing battle with the SEC underscores the challenges faced by crypto companies in navigating securities laws and regulatory oversight.
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