Coinbase agrees to pay $2 million settlement to end lawsuit over Dogecoin lottery activity

According to Decrypt, cryptocurrency exchange Coinbase and marketing company Marden Kane recently agreed to pay a settlement of $2.25 million to settle a long-standing class action lawsuit. The lawsuit alleges that Coinbase did not explicitly inform users that they could participate for free in the Dogecoin trading lottery event held in June 2021, which is suspected of false advertising. According to the settlement agreement, US users who trade at least $100 Dogecoin during the event will receive compensation for the transaction fee and price difference incurred during their first transaction. Data shows that Coinbase earned approximately $1.3 million in transaction fees through related transactions during the event period. This lawsuit began in 2021, where the plaintiff David Suski claimed that the failure to discover the free participation clause in the event resulted in him trading through Coinbase even though he already held Dogecoin. The US Supreme Court rejected Coinbase's request for compulsory arbitration last year.