Coinbase insiders got $1 billion richer by not disclosing negative information, lawsuit claims
Coinbase’s top executives made themselves richer by $1.09 billion by failing to disclose negative information about the company prior to listing its shares in April 2021, according to a lawsuit filed in a Delaware state court. The suit was filed by Adam Grabski, an investor in Coinbase stock, on behalf of all shareholders, on May 1. It names famed investors Marc Andreessen and Fred Wilson as defendants, alongside Coinbase CEO Brian Armstrong and his top management team. It also details exactly how much money they all made selling stock.
The suit discusses in detail the Coinbase board’s confidential plan to go public two years ago, a process which internally was given the nickname “Project Fall Fruits”. At the time, Coinbase chose to do a direct listing of its existing shares, rather than the more common initial public offering (IPO), in which new shares are offered to the public markets. An IPO had two key disadvantages for Coinbase insiders. The main advantage of a direct listing, the suit claims, was that the shares being offered for sale to the public were pre-existing ones already owned by Coinbase executives and investors. Any stock sales would therefore directly benefit the executives and investors .
Source
https://t.me/Crypto_Futures_Trading
