• Coinbase is beginning one lawsuit after it traded and promoted the gyenstablecoin. GMO-Z Trust, the issuers of the stablecoin is alleged by them. Coinbase has described the stablecoin as pegged in value 1:1 to the Japanese Yen. They decided to freeze customer accounts and disable trading in the stablecoin. Looking for best Crypto trading platform then Bitcoin Transactions official website for trading.

• Coinbase has started a lawsuit after customers alleged suffering losses of millions of dollars over the role of crypto exchanges in trading and promoting the stablecoingyen.
• The prospective class-action lawsuit got filed by Hussies Kassfy and Kenneth Donovan.
• They accused the largest crypto exchange in the US. 
• It was accused to mislead customers regarding the gyenstablecoin’s stability.
• They had an idea of the fact that the peg of 1:1 in value to Yen was prone to breaking.
• All involved people in this lawsuit claim that such information got withheld from different investors.
• Once Coinbase began to trade gyen, which is Ethereum-based, it started to lose its peg.
• Its price moved to many times Yen’s value before it took a big plummet.
• Then Coinbase decided that it will freeze accounts of customers and then disabled stablecoin trading.
• They cited technical issues and uncommon market conditions as the reason behind this decision.
• This complaint mentioned that investors put orders believing the value of the coin was equal to that of yen as advertised.
• Yet the tokens they purchased were valued at seven times over that of yen.
• This complaint included this when he said that very suddenly, the value of gyen moved back to the peg and fell 80% in a day.
• For making things worse, the value of gyen catered back to that of yen.
• The exchange compounded this harm and restricted various ability of a customer to sell off the asset and suspended asset trading abruptly without any explanation. 
• Thus buyers of gyen lost collectively a lot of money within a few hours as per the complaint that seeks damages. 
• Donovan was not aware that the stablecoin was never pegged to the yen.
• He paid nearly $335000 for buying 38 million tokens.
• It lost over 80% of the value within an hour the order was placed.
• This was told by the filing.
• Kassfy purchased tokens worth 13 million at a price of nearly $118000 that dropped in value 40%.
• They both asked for the suit to be provided the status of class-action.
• The customers of Coinbase launched one online campaign for getting refunds last year in December following the freeze of trading.
• This claim topped off a challenging week for the exchange as the stock drastically plunged within the crash of the market of crypto.
• The share of Coinbase plummeted 26.40% after disappointing earnings in the first quarter and tumbled over 43 % for that week. 

Conclusion

GMO-Z Trust is mainly named as one defendant along with Coinbase Inc. and Coinbase Global in the lawsuit. It got filed in the Northern California district court. The trust and the exchange never responded immediately to any request for comment.