Coinbase Filed ‘Millions of Dollars’ Lost Customer Lawsuit to Little-Known Crypto Project


Coinbase, the leading US cryptocurrency exchange, is reportedly being sued for offering transactions for GYEN, a coin that acts as a stablecoin pegged to the Japanese yen.

According to a complaint seen by Bloomberg, Coinbase is accused of misleading customers into believing that GYEN is equal to the price of one yen.

After overwhelming buying pressure, GYEN lost its peg against the yen as it rose from $0.008 on November 13th to $0.04 on November 18th and then sharply returned to parity on November 24th.

According to Bloomberg, some investors at Coinbase didn’t understand that the token didn’t trade the same as the yen and was designed to drop sharply to reach the peg.

dissatisfaction state,

“Investors believed and ordered the coin’s value equal to the yen, as advertised, but the tokens they purchased were worth up to seven times the yen. Suddenly, the value of GYEN fell back to the peg. 80% per day.”

Coinbase also frozen trades amid volatility, preventing GYEN holders from selling their coins, losing “millions of dollars in hours” according to complaints.

The GYEN investor group who led the lawsuit said:

“[Due to] The omission of the fact that GYEN was not designed to hold a pegged value to the yen, and the fact that Coinbase forbids investors to liquidate as GYEN plummeted, hundreds of buyers lost huge sums, some in the hundreds of thousands in just hours. I lost dollars. It causes sadness, anxiety, stress and anger.”

On November 19, Coinbase announced that the cryptocurrency exchange stopped Activities related to GYEN and Power Ledger (POWR) for technical reasons.

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Featured Images: Shutterstock/Tithi Luadthong



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