Thursday’s suit alleges that Coinbase was negligent for failing to conduct due diligence of Terraform Labs before it listed USTC and misrepresenting TerraUSD Classic’s risk as an algorithmic stablecoin. The suit compares the information on stablecoins provided by trading platforms Robinhood (NASDAQ:HOOD), Gemini and Kraken to that of Coinbase and concluded that “Rather than disclose the nature of TerraUSD as uncollateralized, controlled by an algorithm, and highly risky, Coinbase passed it off as just another stablecoin.”
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Source: Cryptocurrency - investing.com
