Coinbase Exchange promotes itself as a secure online platform for buying, selling, transferring, and storing digital currency.
Their mission statement says that they are trying to create an open financial system for the world and to be the leading global brand for helping people convert digital currency into and out of their local currency. Coinbase has one of the safest web wallets you can use since it holds 98% of its assets in offline cold storage that cybercriminals cannot access. That way, if a hacker ever stole your money from Coinbase, it would be reimbursed.
However, today the cryptocurrency exchange urged a California federal court to hit pause on litigation accusing them of misleading users who participated in a Dogecoin sweepstakes, while it appeals a magistrate judge’s refusal to force arbitration of the claims. This took place In a motion filed Wednesday,
Coinbase argued that the court should stay the litigation claiming that there is a “reasonable probability” that it will succeed in its Ninth Circuit appeal of the rejected arbitration bid. “There is no question that there is a valid, binding arbitration clause between plaintiffs and Coinbase and this clause.
The complaint alleges that in order to enter the sweepstakes, users had to buy or sell $100 in Dogecoin by June 10, 2021, for a chance to win a cash prize. Although they did provide an alternative, free means of entry, or AMOE, it is also alleged that Plaintiffs specifically designed their email and website advertising to prevent users from finding the AMOE information. The class is claiming that if the AMOE option had been disclosed properly to them, they would not have given Coinbase $100, or paid Coinbase any commission to acquire Dogecoins.
Coinbase hired Marden-Kane, Inc. (MKI) to design, market and execute a $1.2 million Dogecoin Sweepstakes.
