Participants in the Dogecoin contest said that they were tricked into paying $100 to be entered.
The Supreme Court has ruled against cryptocurrency firm Coinbase and its Dogecoin contest. The case of Coinbase, Inc. v. Suski dealt with consumer claims that they were misled into paying $100 or more to participate in a June 2021 contest offering Dogecoin prizes of up to $1.2 million. On Thursday, the court, not an arbitrator, should determine whether the matter is appropriate for arbitration, according to Justice Ketanji Brown Jackson’s majority decision.
During the middle of the morning trading session, Coinbase’s stock price dropped by almost 3.5% in response to the news.
In the past, Coinbase has been unsuccessful in court. The Supreme Court previously decided in 2023 that Coinbase, Inc. v. Bielsk should be shelved pending the resolution of the Suski arbitration dispute.
Claiming to have lost $31,000 after falling for a con artist’s ploy to get access to his Coinbase account, plaintiff Abraham Bielski blamed Coinbase’s lax security measures.
In a more recent order, U.S. District Court Judge Katherine Polk Failla said that the SEC may proceed with its action against Coinbase for unregistered securities sales in the Southern District of New York.
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