Coinbase Users Sue Over Terra Relationship, WLUNA Token Crash

Coinbase Global Inc. had a conflict of interest stemming from its relationship with Terraform Labs that motivated the cryptocurrency exchange to act in its own interest instead of its customers’, a lawsuit says.

Coinbase marketed Terra’s “Wrapped LUNA” token misleadingly, mishandled a WLUNA conversion to a different token designation following a Terra blockchain system collapse in May 2022, and provided inaccurate account records and tax documents, more than a dozen exchange users who held Terra’s LUNA and WLUNA tokens say in the suit. They filed their complaint, which isn’t on behalf of a class, Tuesday against Coinbase and its Coinbase ...