Crypto exchange Coinbase is being sued

A class action lawsuit has been filed in the San Francisco federal court in which the American digital asset trading exchange Coinbase and the Japanese company GMO-Z Trust, the issuer of the GYEN stablecoin, were accused of misleading investors about the stability of the crypto asset.

«Investors placed orders on the exchange, believing that the value of the GYEN token, as stated by Coinbase and GMO-z, was equal to the yen. However, the tokens they bought were worth seven times more than the yen,» the lawsuit says.

When the price of GYEN suddenly dropped by 80% in one day, Coinbase froze trading in the stablecoin, thereby «exacerbating the losses and limiting the ability of customers to sell the asset.» As a result, GYEN holders «collectively lost millions of dollars in a matter of hours,» investors believe.