A lawsuit has been filed against the US-based crypto exchange Coinbase for promoting the GYEN coin.
Coinbase is a popular US-based Nasdaq-listed crypto exchange. Right now the exchange is standing at second rank in the industry as a legendary crypto platform. The exchange has huge numbers of users because of its highly compliance-based crypto services.
On 13 May, a few Coinbase users filed a lawsuit against the Coinbase exchange and GYEN coin issuer GMO-Z.com.
According to the filed lawsuit, the GYEN coin was initially launched as Japanese Yen pegged 1:1 stablecoin but this coin saw a huge downfall in its price value, which was not a usual part of any stable coin.
Plaintiff’s complaint noted:
“Investors placed orders believing the coin’s value was, as advertised, equal to the yen, but the tokens they were purchasing were worth up to seven times more than the yen. Just as suddenly, the GYEN’s value plunged back to the peg — falling 80 percent in one day.”
According to the filed lawsuit, users lost millions of dollars worth of funds because of that downfall in the price of the GYEN coin.
Allegations on Coinbase exchange claimed that Coinbase exchange suspended trading of GYEN coin, after an 80% downfall in its value, so in this way, Coinbase exchange prohibited users from selling the coin.
At the time of writing this article, GYEN is trading at $0.007732 and this is equivalent to the Japanese yen value.
Terra’s ecosystem collapse
Since the Monday of this week, Terra’s UST & Luna coin started to face a downfall in their values. And right now Luna’s trade price is $0.0004. while Terra’s UST coin value is standing at $0.183, which is an 82% downfall in the pegged $1 stable value.
Probably this situation forced the victims of GYEN traders, who faced millions of dollars loss, to take legal steps against the supporters of the coin.