Lawsuit Against Coinbase: The Exchange Faces Legal Trouble For Listing TerraUSD!
On Thursday, a class-action lawsuit was launched against Coinbase (NASDAQ: COIN), alleging negligence in the trading platform’s listing of the TerraUSD stablecoin and failure to disclose its financial relationship with Terraform Labs.
This is the second class-action lawsuit against Coinbase that has been filed. Last month, a lawsuit was filed in connection with GYEN’s de-pegging in November.
The lawsuit filed on Thursday claims that Coinbase was negligent in neglecting to undertake due diligence on Terraform Labs before listing TerraUSD and in misrepresenting TerraUSD’s risk as an algorithmic stablecoin.
The suit compares information on stablecoins provided by trading platforms Robinhood, Gemini, and Kraken to Coinbase and concludes that
“Rather than disclosing the nature of TerraUSD as uncollateralized, algorithm-controlled, and highly risky, Coinbase passed it off as just another stablecoin.”
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