Investors who lost millions of dollars sued Coinbase!

Cryptocurrency exchange that has lost 35 percent recently Coinbase‘s in trouble. Japan stablecoin allegedly pegged to the new GYEN Users sued the company because of it.

Coinbase has been sued! Here’s why

Coinbase users sued Coinbase over its GYEN stablecoin. The reason is that the company is promoting a stablecoin that is “nothing”. The role in trading this stablecoin has made users take a stand on Coinbase.

The waters have not settled for a while in the crypto money community. Now, another interesting event has happened on the side of Coinbase. According to a class action complaint filed in federal court in Northern California, Coinbase and the issuer of GYEN are accused of misleading investors about the stablecoin’s stability and causing millions of dollars in losses. Tokyo-based Trust Co. It is among the claims that the value of the GYEN issued by the company is fixed to the price of the Japanese yen. However, when Coinbase started trading GYEN in November 2021, the asset quickly became independent again.

According to the complaint, the token that investors bought has become 7 times more valuable than the yen. Of course, this appreciation was short-lived and the value of GYEN decreased by 80 percent in just 1 day. Coinbase has decided to freeze trading of the asset when the price drops. Allegedly, after this decision, customers’ ability to sell the asset was restricted and their losses increased. Users who lost millions of dollars as a result sued the company.

Source: Teknolojioku Rss by

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