Coinbase sued in connection with promotion of TerraUSD cryptocurrency
I have found this not so good news for Coinbase, there is not much information about it, however the lawsuit accuses Coinbase of not disclosing the risks inherent in TerraUSD and of misleading the plaintiffs and the class to believe that they were buying a "reserve backed stablecoin".
Because TerraUSD was allegedly pegged to the currency issued by the US government.
The document says, and adds that:
Source: https://www.theblock.co/post/152942/coinbase-sued-in-relation-to-promotion-of-terrausd-cryptocurrency?utm_source=cryptopanic&utm_medium=rss
Quote
The complaint also contends that investors lost around $18 billion in a matter of days in May due to the devaluation of TerraUSD.
Because TerraUSD was allegedly pegged to the currency issued by the US government.
The document says, and adds that:
Quote
"In reality, TerraID is not backed by actual US dollars or any other tangible assets held in reserve"
Source: https://www.theblock.co/post/152942/coinbase-sued-in-relation-to-promotion-of-terrausd-cryptocurrency?utm_source=cryptopanic&utm_medium=rss