The top management of Coinbase is accused of having thrown millions in order to avert losses from insider trading

The top management of Coinbase is accused of having thrown millions in order to avert losses from insider trading

New trouble brews itself for Coinbase because a lawsuit claims that the top management of the crypto exchange sells shares using insider information and has given up massive losses.

Brian Armstrong, Chief Executive Officer from Coinbase, board member Marc Andreessen and other managers are accused of avoiding losses of over $ 1 billion with the help of insider information in order to sell shares within a few days after listing the platform in 2021.

• The investor Adam Grabski, who submitted the lawsuit, claimed that the management of the company had sold its shares before "essential negative information that destroyed market optimism from the publication of the first quarter of the company" triggered a decrease in the share price.
• The complaint was disposed of on Monday before the Delaware Chalancery Court, which found that the Coinbase board of Coinbase started a direct list instead of a more typical IPO and sold shares worth $ 2.9 billion quickly.

"Within five weeks, these shares lost over $ 1 billion in value, and the market capitalization of Coinbase collapsed by more than $ 37 billion."

• As part of the direct listing, Armstrong is said to have sold more than $ 291 million in coin base shares.
• The risk capital company of Andreessen, Andreessen Horowitz, on the other hand, according to the complaint, shares worth over $ 118 million in the same period.
• in a statement sent by email to Bloomberg, Coinbase said that the lawsuit was an example of "unfounded claims".
• The lawsuit arises for a month after the US Securities and Exchange Commission (SEC) sent a notification of Wells to Coinbase due to the listed securities.
• The tensions with the regulatory authority have escalated for some time.
• The company listed on the Nasdaq returned with its own lawsuit against the SEC and asked a federal court to force the SEC to provide clearer guidelines on the rules for the cryptoma market.

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