Barely a month after TerraUSD crashed, the crypto industry is still smarting from the effect as Coinbase, one of the largest crypto exchanges has been sued in a class-action suit filed on June 16.
According to details of the suit, the exchange failed to conduct due diligence about the nature of TerraUSD stablecoin before listing it on its platform. And it is also alleged that Coinbase failed to disclose the financial relationship between it and Terraform Labs, the creator of Terra USD stablecoin.
The suit continues that while other crypto platforms like Robinhood, Gemini, and Kraken provided detailed information on the nature of the asset, Coinbase “passed it off as just another stablecoin.”
The lawsuit was filed by Milberg Coleman Bryson Phillips Grossman and Erickson Kramer Osborne.
However, this class suit is not the first to accuse Coinbsse of negligence regarding stablecoins. In May, Erickson Kramer Osborne filed a similar lawsuit about its role in the de-pegging of GYEN in November last year, saying the Brian Armstrong-led exchange engaged in negligent misrepresentation and failure to use reasonable care in listing the GYEN.
Coinbase Executives Hints at More Staff Cuts
A top executive at Coinbase has revealed that the exchange could be involved in more job cuts in the future.
Faryar Shirzad, Coinbase’s Chief Policy officer, while speaking at the Financial Times’ “The Next Web” conference, said the firm could be looking to further downsize in the future; however, “We don’t anticipate it at this time.”
Last week, Coinbase’s CEO Brian Armstrong revealed that the exchange was downsizing because of the macroeconomic situation that could last for a while.
The firm had also announced a hiring freeze when it “unhired” candidates it had offered a place in its firm previously.
Meanwhile, Coinbase is not the only crypto firm that is downsizing presently. Other top exchanges like Gemini, Crypto.com, and many others have also been forced to cut their staff due to the market downturn.