A SECOND CLASS-ACTION SUIT AGAINST COINBASE
A suit-action suit filed in Coinbase on Thursday said the trading platform was negligent in its TerraUSD stablecoin list and suspected it had failed to disclose its financial relationship with Terraform Labs. This is the second phase of the outstanding action against Coinbase. A lawsuit was filed last month in connection with the demolition of GYEN in November.
Thursday's case alleges Coinbase was negligent in failing to conduct Terraform Labs' diligence before calculating TerraUSD and distorting TerraUSD's risk as an algorithmic stablecoin. The suit compared the stablecoins information provided by the Robinhood, Gemini and Kraken trading platforms with that of Coinbase and concluded that "Rather than exposing the TerraUSD genre as unimportant, algorithm-driven, and more dangerous, Coinbase passed like any other. stablecoin. ”
The suit also states that Coinbase Ventures, the company's investment arm, was one of the main sponsors of Terraform Labs, and that was an additional reason why the company could disclose TerraUSD flexibility.
The plaintiffs and sections in this case are represented by law firm Milberg Coleman Bryson Phillips Grossman and Erickson Kramer Osborne. The last company also represented the plaintiffs in a lawsuit filed against Coinbase and GMO-Z.com Trust on May 13 in connection with the unveiling of Japan's yen-pegged GYEN in November.
GYEN shot in price and dropped sharply a week after being listed on Coinbase, prompting the forum to suspend other users' accounts. Some users also lost money - "immeasurable millions," according to the suit - during the incident. The lawsuit alleges that GMO-Z.com has failed in its duties to the plaintiffs and the class in many ways, starting with the stablecoin design.
Coinbase is said to be involved in misinformation and failure to exercise due care in GYEN listing despite the apparent risk of downgrading.