Investors have accused cryptocurrency exchange Coinbase and GMO-Z Trust of providing false information about the Japanese yen-pegged stablecoin GYEN. Bloomberg writes that the class action was filed in federal court in Northern California.

Plaintiffs claim they lost “millions of dollars” due to Coinbase and GMO-Z Trust promoting GYEN as a stablecoin. According to them, after it started trading on the platform in November 2021, it “immediately lost its value against the yen.”

“Investors placed orders believing that the value of the advertised asset was equivalent to the yen. However, the tokens they bought were worth up to seven times the yen. Suddenly, the price of GYEN fell to par with the Japanese national currency,” the lawsuit says.

When the asset’s price plummeted, Coinbase suspended trading, limiting investors’ ability to cut losses. As a result, investors “collectively lost millions of dollars in a matter of hours.”

The plaintiffs are seeking compensation for the damage done to them.

GMO-Z Trust is connected to the Japanese big tech GMO Internet. In December 2020, the company received a license NYDFS for the issuance of yen and US dollar pegged stablecoins.

Recall that in May 2022, self-proclaimed creator of digital gold, Craig Wright accused Coinbase and Kraken of trading “fake” bitcoins.