A significant class-action lawsuit has been filed by Coinbase Global, Inc. shareholders against the company’s top executives and board members, including co-founder and CEO Brian Armstrong and board member Marc Andreessen. The legal action alleges a multi-year scheme of insider trading and securities fraud, claiming the defendants sold billions of dollars worth of Coinbase stock while concealing critical information about the company’s operational vulnerabilities.
The plaintiffs contend that from its 2021 direct listing through 2024, Coinbase leadership failed to disclose systemic deficiencies in its compliance programs and internal controls. The suit specifically claims these shortcomings left the platform susceptible to service disruptions and regulatory enforcement actions. Shareholders argue that this alleged material non-disclosure artificially inflated the company’s stock price, allowing insiders to profit from timely sales before the full extent of these issues became public knowledge. The lawsuit seeks substantial financial damages for the purported violations of federal securities laws, marking a serious legal challenge for the prominent cryptocurrency exchange.
