Coinbase Loses Trial to Force Arbitration in Dogecoin Lawsuit By CoinEdition

• U.S. court denies Coinbase (NASDAQ:) to force private arbitration on former users.
• Users claim they were “duped” by the rules in Coinbase’s contest.
• Judge halts the proceedings in the sweepstakes case after Coinbase appeal.

According to a ruling by the U.S. appeals court on Friday, Coinbase Global Inc (COIN.O) cannot require former users to use private arbitration instead of the courts to settle disputes related to the Dogecoin sweepstakes run by the crypto exchange.

Four former Coinbase consumers filed a lawsuit against the firm, alleging that they were tricked into paying $100 or more to enter a contest in June 2021 for a chance at winning prizes worth up to $1.2 million in Dogecoin.

To open an account, each user had to accept the terms of the company’s user agreement, which included a clause mandating that any disagreements be resolved through arbitration.

The ruling on Friday followed a week after the United States Supreme Court agreed to hear a procedural issue in that and another case, which Coinbase had unsuccessfully attempted to drive into arbitration.

Business organizations argue that arbitrat …

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