Supreme Court ruling affects Coinbase’s plans for Dogecoin lottery case
On May 23, the Supreme Court of the United States ruled that the collective lawsuit against Coinbase regarding the 2021 Dogecoin giveaway cannot be transferred to private arbitration. Instead, the case must be heard in general jurisdiction court.
The Dogecoin lottery controversy
In June 2021, Coinbase organized a lottery where $1.2 million worth of Dogecoin tokens were at stake. Participants had to buy at least $100 worth of Dogecoin to enter. However, some users claimed that the terms were misleading, alleging that Coinbase did not disclose that purchasing Dogecoin was not mandatory and that the company inflated the price of DOGE.
Supreme Court’s decision impacts Coinbase
With hopes of transferring the case to arbitration dashed, Coinbase now faces a public hearing regarding the allegations. This decision by the Supreme Court puts the company in a position where the legal proceedings will be open to the public.
Coinbase expands into financial sector
On another front, Coinbase recently introduced retail futures contracts for oil and gold on its platform, showcasing its growth in the financial industry.
