07/06/2022


Coinbase Facing Class Actions Over Unstable Coins GYEN, USTC

A class action lawsuit was filed against Coinbase (NASDAQ 🙂 on Thursday, alleging that the trading platform acted negligently in listing the stablecoin TerraUSD Classic (USTC) and alleging that it failed to disclose its financial relationship with Terraform Labs. This is the second pending lawsuit against Coinbase. A lawsuit was filed last month in connection with GYEN’s (GYEN) disengagement in November.

The lawsuit filed on Thursday alleges that Coinbase acted negligently by failing to conduct due diligence for Terraform Labs prior to listing USTC and misrepresenting the risks of TerraUSD Classic as an algorithmic stablecoin. The lawsuit compares information on stablecoins provided by Trading platforms Robinhood (NASDAQ :), Gemini, and Kraken told Coinbase, concluding that “instead of exposing the nature of TerraUSD as unsafe, algorithm-controlled, and high-risk, Coinbase has just passed it on as just another stablecoin.”

Read more on Coin Telegraph

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