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N/A.PRVT

id: 1965

GMO-Z.com Trust Company, Inc. ($GYEN) $6.75M Investor Settlement

Eligible claimants can submit their claims for compensation.

$6,750,000

Cash Settlement

S.D. New York

Court

1:23-cv-08431

Case number

12/29/2020

Class period Start

10/10/2025

Class period End

06/05/2026

Claim deadline

GMO-Z.com Trust Company, Inc. agreed to a $6.75M settlement to resolve claims that GYEN purchasers in New York and California were harmed when the token allegedly detached from its Japanese yen peg after being marketed as stable.

Outline:

GMO Trust agreed to pay $6.75 million to settle this case. GYEN was marketed as a yen-pegged stablecoin. They alleged buyers were not told it could detach from that peg and swing sharply in value. The settlement covers certain GYEN purchasers in New York and California.

Timeline:
December 29, 2020: GMO Trust was regulated by the New York State Department of Financial Services, and the relevant GYEN purchase period began.
March 3, 2021: GMO Trust advertised the benefits of trading GYEN on the Liquid exchange.
May 12, 2021: Binance first allowed GYEN trading, and plaintiffs allege the token immediately came untethered from the yen and surged in value.
November 16, 2021: Coinbase first allowed GYEN trading, and plaintiffs allege GYEN again came untethered from the yen and then plunged back toward the peg.
May 12, 2022: Plaintiffs filed the class action in the Northern District of California.
July 13, 2023: The claims against GMO Trust were severed and transferred to the Southern District of New York.
December 30, 2025: The parties entered into the $6.75 million settlement stipulation.
Background:

GYEN is a cryptocurrency issued by GMO Trust and marketed as a stablecoin pegged 1-to-1 to the Japanese yen. Plaintiffs said that framing made the token appear far less volatile than it actually was.

According to the complaint, GMO Trust promoted GYEN through exchange partnerships and highlighted uses such as hedging, arbitrage, and earning yield. Plaintiffs said those promotions encouraged investors to treat GYEN as a practical and relatively stable investment product.

The case focused on what plaintiffs described as major pricing disruptions after GYEN began trading on Binance in May 2021 and on Coinbase in November 2021. They alleged the token broke from its yen peg during those trading launches, rose sharply, and then fell back, causing substantial losses for buyers.

Plaintiffs further alleged that GMO Trust failed to disclose that GYEN was susceptible to large swings in value, even though it was marketed as pegged and stable. GMO Trust denied wrongdoing, but agreed to a $6.75 million cash settlement to resolve the action.

What Can Investors Expect Now?

GMO-Z.com Trust Company, Inc. agreed to a $6.75M settlement to resolve claims that GYEN purchasers in New York and California were harmed when the token allegedly detached from its Japanese yen peg after being marketed as stable.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.

Case Type

US Securities Class Action

Case Status

Accepting Claims

Alleged Offence

Misleading Statements,

Failure to Disclose,

Omissions

Suspected Party

Management

Security Type

Crypto Asset

Trade Direction

Long

Filing date

05/12/2022

Plaintiffs

Kenneth Donovan; Hussien Kassfy; John Brambl

Attorneys

Erickson Kramer Osborne LLP

Defendants

New York Limited Purpose Trust Company

Judge

Stewart D. Aaron

Court hearing date

05/27/2026

Exclusion deadline

04/30/2026

Objection deadline

04/30/2026

Hearing deadline

04/30/2026

Attorney fee

$2,360,000

Trades matching type

FIFO

Frequently Asked Questions

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