Coinbase is facing class action for listing GYEN, TerraUSD

The cryptocurrency exchange Coinbase may face class action lawsuits for not performing due diligence before using GYEN, TerraUSD, which resulted in millions of losses.

One suit claimed that the organization failed to tell users about its relationship with Terraform Labs, and the risks associated with TerraUSD (Coinbase Ventures, the investment arm, is the biggest investor in this project). It states that Robinhood, Kraken, and Gemini disclosed more information on these coins compared to Coinbase.

The plaintiffs are represented by Milberg Coleman, Bryson Philips Grossman, and Ericson Kramer Osborne. The last firm is also representing the case against Coinbase and GMO-Z.com Trust regarding the de-pegging.

GYEN first shot up, and then dipped to extreme lows (after being listed), which prompted Coinbase to freeze some accounts. People also have lost millions in the process. The claim is that Coinbase has misrepresented and practiced negligence while listing these coins.