Coinbase insiders sued for dumping stock, saving $1 billion. | Wolfonaire Premium Signals 🚀 🚀 🚀 🚀

Coinbase insiders sued for dumping stock, saving $1 billion.

The company’s board deployed a so-called direct listing instead of a more typical initial public offering and rapidly sold off $2.9 billion in stock before Coinbase management later revealed “material, negative information that destroyed market optimism from the company’s first quarterly earnings release forward,” according to the complaint unsealed Monday in Delaware Chancery Court.

“Within five weeks, those shares declined in value by over $1 billion, and Coinbase’s market capitalization plummeted by more than $37 billion,” claimed the investor, Adam Grabski, who said he’s held Coinbase shares since April 2021.

Armstrong sold $291.8 million of Coinbase stock as part of the direct listing, according to the complaint, while Andreessen’s venture capital firm, Andreessen Horowitz, dumped $118.6 million worth of the stock.

https://www.bloomberg.com/news/articles/2023-05-02/coinbase-insiders-avoided-1-billion-in-stock-losses-suit-says