Cryptocurrency exchange Coinbase has faced a class action lawsuit over the promotion of TerraUSD (UST).
The lawsuit accuses the cryptocurrency exchange of failing to disclose the risks inherent to the UST and misleading people into buying a reserve-backed stablecoin.
The UST was marketed as an investment product that could “eliminate volatility” backed by US dollars, the plaintiffs claim. Plaintiffs said that in reality the UST was not supported by any tangible assets.
Additionally, the company stressed that investors lost $18 billion due to the UST devaluation.
The lawsuit was filed by the law firm Milberg Coleman Bryson Phillips Grossman.
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