Coinbase CEO, Board Members Accused of Insider Trading, Lawsuit Claims $1 Billion in Losses Avoided

Published on

A recent lawsuit filed by an investor alleges that Coinbase Inc.’s top officials, including Chairman and CEO Brian Armstrong and board member Marc Andreessen, engaged in insider trading to avoid losses of over $1 billion.

The alleged trading occurred shortly after the cryptocurrency platform’s public listing two years ago, before the disclosure of negative information caused the company’s share price to plummet.

The lawsuit claims that the board used a direct listing method, which allowed them to rapidly sell off $2.9 billion in stock before Coinbase management revealed “material, negative information” during the company’s first quarterly earnings release. The complaint, which was unsealed in Delaware Chancery Court on Monday, suggests that the board’s actions allowed Armstrong, Andreessen, and other officers to benefit from insider information and avoid substantial losses.

Image

Latest articles

Ripple Secures Full Payment Institution License from Singapore’s Central Bank

SINGAPORE — Ripple, a prominent player in the digital payment industry, announced that it...

Bitcoin Whales Amass Record Holdings, Now Hold 66% of Supply

Prominent Bitcoin ($BTC) investors have engaged in substantial accumulation of the flagship cryptocurrency throughout this year, amassing a total of 13.03 million coins in their holdings, marking the highest level in 2023.

SEC Takes First Enforcement Measure Against NFTs Regulatory Body Concludes Impact Theory’s NFTs Were Marketed as Unregistered Securities

U.S. regulatory authorities have mandated a Los Angeles company, which had previously issued non-fungible tokens (NFTs), to provide compensation to investors who had procured the aforementioned NFTs.

Binance Cuts Ties with Sanctioned Russian Banks Amid Regulatory Compliance Efforts

Binance has severed its affiliations with five Russian banks that were under sanctions, having been previously featured on the exchange's peer-to-peer platform for ruble fund transfers, the native currency of Russia.

More like this

Bitcoin Whales Amass Record Holdings, Now Hold 66% of Supply

Prominent Bitcoin ($BTC) investors have engaged in substantial accumulation of the flagship cryptocurrency throughout this year, amassing a total of 13.03 million coins in their holdings, marking the highest level in 2023.

SEC Takes First Enforcement Measure Against NFTs Regulatory Body Concludes Impact Theory’s NFTs Were Marketed as Unregistered Securities

U.S. regulatory authorities have mandated a Los Angeles company, which had previously issued non-fungible tokens (NFTs), to provide compensation to investors who had procured the aforementioned NFTs.

Binance Cuts Ties with Sanctioned Russian Banks Amid Regulatory Compliance Efforts

Binance has severed its affiliations with five Russian banks that were under sanctions, having been previously featured on the exchange's peer-to-peer platform for ruble fund transfers, the native currency of Russia.