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A lawsuit has been filed in a US court against the crypto exchange Coinbase accusing management of insider trading in stocks, which helped the exchange avoid huge losses after the report of financial results.
Investor Adam Grabski, whose father's name is the subject of the lawsuit in U.S. federal court, alleges: CEOCoinbase's Brian Armstrong, together with board member Marc Andreessen, sold shares of the exchange using insider information.As part of the direct listing, Armstrong sold more than $291 million worth of Coinbase shares, and venture capital firm Andreessen HorowitzAfter the public listing of Coinbase shares on the NASDAQ in 2021, top managers managed to avoid losses of more than $1 billion, according toplaintiff.
Within five weeks, the stock price fell by more than $1 billion, and Coinbase's market capitalization fell by $37 billion.Grabsky is confident that the management intentionally got rid of its shares before the first quarterly report became available to the publicAccording to this report, Coinbase's profits have declined significantly, and this has shattered optimistic investor sentiment, causing Coinbase's stock price to decline as well.
Coinbase management has denied the allegations.calling them unfounded. Recently, a class action complaint was filed against the exchange for possible privacy violations in the collection of biometric data. The trading platform also received a notice from the US Securities and Exchange Commission (SEC), which suspects the platform of trading in unregistered securities.