Shareholder sues Coinbase, alleging that the 2021 stock listing was based on false information

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Last Updated on August 11, 2022 by Bitfinsider

A lawsuit has been filed against top US-based cryptocurrency exchange Coinbase, alleging that the firm’s 2021 stock listing was based on false information.

According to a recent court filing, a Coinbase shareholder is suing the crypto exchange’s executives for allegedly misleading investors into purchasing shares that were “materially different and significantly riskier” than what was disclosed to them.

According to the plaintiff, in the months leading up to Coinbase’s initial stock market listing, the company generated a massive influx of new users through ad campaigns, causing the platform’s trading volume to spike, resulting in a breakdown in its operations and a disruption in its historical growth cycle.

According to the shareholder, the company has harmed itself as well as those who have invested in it as a result of this.

The Defendants, according to the complaint, misrepresented Coinbase to investors in their Registration Statement just before selling over $700 million in Coinbase stock.


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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.


Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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