Customers sued Coinbase for listing fake GYEN stablecoin
The lawsuit says the token, which is pegged to the Japanese yen, collapsed by 80% the day after trading began
14.05.2022 - 08:30
796
2 min
0
What’s new? Coinbase customers from the US have filed a class action lawsuit against the cryptocurrency exchange for posting a fake GYEN stablecoin. According to the lawsuit, the price of the token, which is pegged to the Japanese yen, collapsed by 80% the day after trading began, Bloomberg reports. The plaintiffs allege that the issuer of the GMO-Z stablecoin misled about the stability of the coin, resulting in investors suffering losses of millions of dollars.
Details of the case. In November 2021, investors placed orders on the exchange, believing that the value of the coin, as advertised, would be equal to the yen. But the tokens they bought were worth seven times the value of the Japanese currency, and a day later their exchange rate dropped by 80% from its original level.
Coinbase then suspended trading of the stablecoin, which “exacerbated the harm already caused by denying customers the opportunity to sell the asset,” the investors claim. The plaintiffs intend to represent all GYEN buyers, but do not specify how much compensation they demand.
What happened before? In early May, Coinbase published its report for the first quarter of 2022. According to the document, the company’s losses during this period amounted to $430 million, and the exchange’s total trading volume fell by $238 billion.
Also, self-proclaimed Satoshi Nakamoto Craig Wright sued crypto exchanges Coinbase and Kraken for trading “fake” bitcoin. He claims that the platforms sell another asset under the ticker symbol BTC under the guise of real bitcoin. According to the entrepreneur, Bitcoin Satoshi Vision (BSV) can be considered the only cryptocurrency that has fully implemented the original Bitcoin protocol.
Useful material?
Telegram 
Twitter Incidents
The company is linking the incident to a compromised private key on a service wallet, rather than a smart contract exploit
May 22, 2026
Incidents
Following the incident, the project temporarily halted trading operations and node activity.
May 15, 2026
Incidents
The user spent weeks unsuccessfully trying to guess the password until Claude helped find an old wallet backup file
May 14, 2026
Crypto regulations
Authorities are introducing mandatory registration for companies handling cross-border crypto transactions
May 8, 2026
Incidents
According to Blockaid, the attack may have been carried out by the same hacker behind the 1inch Fusion V1 exploit.
May 7, 2026
Incidents
The attacker gained administrative access and altered contracts to drain user funds
Apr 30, 2026
Cryptocurrency rates
-
Bitcoin
$64 347
BTC
-2.81%
-
Ethereum
$2 551.16
ETH
+3.56%
-
BNB Smart Chain
$579.4
BSC
+1.23%
-
Ripple
$1.21
XRP
+0.94%
-
Dogecoin
$0.091257
DOGE
-0.66%
-
TRON
$0.160134
TRX
-1.59%
-
Zcash
$593.86
ZEC
-2.26%
-
Cardano
$0.199931
ADA
-4.21%
-
Stellar XLM
$0.213902
XLM
-2.46%
-
Polkadot
$3.32
DOT
+5.27%