NEW YORK: Coinbase Global Inc was sued over its role in the promotion and trading of a stablecoin cryptocurrency that allegedly turned out to be “anything but.”

       The digital asset trading platform and the issuer of the GYEN token were accused of misleading investors about its stability, leading to millions of dollars in losses, according to the proposed class-action complaint filed in federal court in northern California.

       The complaint came a day after Coinbase shares and bonds plunged to new lows, signalling investor skepticism about the prospects of the crypto exchange in a worsening bear-market.

       Unlike bitcoin, stablecoins are backed by hard assets. GYEN, which was issued by Tokyo-based GMO-Z.com Trust Co, purportedly had its value pegged to the price of the Japanese yen.

       But in November 2021, when Coinbase started trading GYEN, “the asset immediately came untethered from the yen,” according to the lawsuit. — Bloomberg