Coinbase Faces Suit Over Yen-Linked Stablecoin's Volatility
By Sarah Jarvis (May 13, 2022, 5:45 PM EDT) -- Coinbase and a subsidiary of Japanese conglomerate GMO Internet Group have been hit with a proposed securities class action in California federal court over the alleged instability of a cryptocurrency called Gyen and its break from a one-to-one peg to the Japanese yen.
Purchasers Kenneth Donovan and Hussien Kassfy alleged in their Thursday complaint that Coinbase and GMO-Z.com Trust Company Inc. promoted the stablecoin Gyen as pegged one-to-one in value to the Japanese yen while knowing that peg was "likely, if not certain" to break when Gyen opened for trading on Coinbase in November. According to the suit, Gyen had collapsed...
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