Last Updated on May 2, 2023 by Bitfinsider
An investor complaint has been filed against Coinbase, the largest cryptocurrency exchange in the United States, alleging that its top executives used insider information to erase $1 billion in losses. The share price of Coinbase stocks, which is experiencing a difficult 2023, fell by about 7% during the last day.
According to sources, the lawsuit names investors Marc Andreessen and Fred Wilson as well as Coinbase CEO Brian Armstrong. It is reported that between April 14, 2021, and the day the company released its quarterly earnings, Coinbase executives sold $2.9 billion worth of $COIN stock.
On April 14, 2021, Wilson sold almost $1.8 billion worth of stock while Coinbase made its Nasdaq debut. According to reports, CEO Brain sold shares for $292 million, and Andreessen sold shares worth $119 million.
The price of COIN dropped by 7% over the past 24 hours as soon as the investor lawsuit news surfaced. Its closing trading price was $50.14. Data, however, indicates that Coinbase is having more problems as its pre-market price fell by 1.5% to $49.39.
The primary U.S. regulator, the Securities and Exchange Commission (SEC), issued many legal warnings to the exchange, which has caused the price of NASDAQ: COIN to continuously decline. Over the past month, the price of COIN has decreased by 21%.
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