13 May, 2022
Leading US crypto exchange Coinbase and the issuer of the GYEN token are being sued for misleading investors.
Investors claim they were misled by the exchange and issuer over the stability of the token.
The lawsuit was filed a day after Coinbase stocks plunged dramatically to new lows amid the ongoing market crash.
Tokyo-based GMO-Z.com Trust Co issued GYEN with its value pegged to Japanese Yen.
After Coinbase listed the token back in November 201, stabelcoin’s value came untethered from the yen. The token fell 80% in one day.
The crypto exchange giant is already in troubled waters as it could potentially face bankruptcy amid the ongoing crash.
With Terra UST also crashing, investors of the token might take the same approach against the Terraform Labs and exchanges that listed it.