Insider Trading Case Against Coinbase Leadership Surges Ahead
Coinbase’s legal battle over alleged insider trading hit a new milestone this week when a Delaware judge refused to toss a shareholder suit, keeping alive claims that top executives and directors sold stock while sitting on inside information. Reports say the ruling does not resolve guilt or innocence. It simply lets the case continue in court. Court Lets Case Move Forward According to filings and press reports, the suit — brought by a shareholder in 2023 — accuses CEO Brian Armstrong and board member Marc Andreessen, among others, of selling large blocks of Coinbase stock around the company’s 2021 direct listing. The complaint alleges those sales totaled close to $3 billion and that the insiders avoided more than $1 billion in losses by acting before negative information reached the market. The judge’s decision to deny a motion to dismiss rests less on the precise dollar numbers and more on questions about process. Reports note that a special litigation committee within Coinb...