Coinbase, one of the largest cryptocurrency exchanges in the USA, is not getting rid of trouble. Struggling with investigations by government agencies that have taken a tougher stance on cryptocurrencies, Coinbase is now facing a stock-based lawsuit.
According to a report in the global publication Bloomberg, Coinbase executives used insider trading after the IPO, allowing some investors to sell stocks before the drop. According to the prosecution, stockholders who received insider information remained unaffected by the $1 billion loss.
Did Managers Sell Shares?
Investors suing the crypto trading platform blamed CEO Brian Armstrong, Marc Andreessen, and other executives for the incident. According to the indictment, the executives made the sale before the negative news about Coinbase was reflected in the press.
As a result of the sale, the market value of the stock market decreased by 37 billion dollars. Plaintiffs allege that Armstrong and Horowitz made $291 and $118 million in personal sales, respectively.
Coinbase shares, which started their journey at $ 400 on the stock market Nasdaq, are currently trading at around $ 51.
