Coinbase is facing class-action suits for Listing UST
The crypto sector is still reeling from the effects of TerraUSD's meltdown, as Coinbase, one of the main crypto exchanges, was sued in a class-action complaint filed on June 16.
According to the lawsuit's specifications, the exchange failed to undertake due diligence on the TerraUSD stablecoin before allowing it to be listed on its platform. Coinbase is also accused of failing to disclose its financial link with Terraform Labs, the company behind the Terra USD stablecoin.
JUST IN: #Coinbase has been sued for allegedly failing to conduct due diligence on $UST and misrepresenting its risks.
— Watcher.Guru (@WatcherGuru) June 18, 2022
While other crypto sites such as Robinhood, Gemini, and Kraken offered specific information about the asset's nature, Coinbase "passed it off as simply another stablecoin," according to the lawsuit.
Milberg Coleman Bryson Phillips Grossman and Erickson Kramer Osborne filed the case.
This isn't the first time Coinbsse has been accused of incompetence in relation to stablecoins. Erickson Kramer Osborne filed a similar action in May, alleging that the Brian Armstrong-led exchange participated in negligent misrepresentation and failed to use reasonable care in listing the GYEN in November of last year.
Executives at Coinbase have hinted at more layoffs.
Coinbase's senior executive has hinted that the exchange may be forced to make further job layoffs in the near future.
Coinbase's Chief Policy Officer, Faryar Shirzad, remarked at the Financial Times' "The Next Web" conference that the company may aim to reduce more in the future, but that "we don't foresee that at this moment."
Coinbase CEO Brian Armstrong announced last week that the exchange was reducing due to a macroeconomic crisis that might endure for some time.
When it "unhired" people it had previously promised a position, the business imposed a hiring freeze.
Coinbase isn't the only cryptocurrency company shrinking right now. Due to the market collapse, several big exchanges including Gemini, Crypto.com, and many more have been forced to reduce their employees.