Coinbase Stablecoin Claims
EKO is leading a case against digital asset exchange Coinbase for the role it played in the the collapse off the TerraUSD coin (UST).
Coinbase categorized UST as a "stablecoin," according to the complaint, with the stability of a fiat currency. The complaint claims Coinbase knew its marketing was false, and that Coinbase withheld both the volatile nature of UST and its own connections to UST's issuer, Terra Form Labs, from its customers.
Thousands of Coinbase customers invested in UST through the exchange, then lost untold millions when the UST completely collapsed. It fell in value from its targeted value of $1.00 to less than $0.10 in just days.
Coinbase moved to force the case into arbitration. In September 2023, an arbitrator ruled Coinbase's arbitration clause is unenforceable and the case must return to the District Court, where we are currently litigating.
The case is Pearl v. Coinbase, Case No. 3:22-cv-03561, filed in the Northern District of California. You can access the complaint here.
If you were a Coinbase customer affected by the UST collapse, or if you have information about the case, please contact us.