Execs Coinbase faces a lawsuit for shareholders, claiming that they reduced the risk of bankruptcy
Coinbase Coinbase Central Company in the United States and many of its executives has been subjected to a new lawsuit claiming to have misled investors about bankruptcy risk.
Coinbase Wenduo Guo shareholder foot The complaint in the New Jersey Federal Court on February 18. In the complaint, Qoh said that Coinbase and its leadership failed to reveal that in a bankruptcy, Coinbase’s assets can be considered part of the bankruptcy drug on the stock exchange. This would make retail investors who use the platform of non -guaranteed creditors in the bankruptcy scenario.
Coinbase accused of using the company’s funds to perform risk deals
Before the inclusion of Coinbase in April 2021, about 75 of the encryption exchange collapsed, according to February 18 complaint. This, according to GUO, left platform clients unable to recover their coding losses. Then the shareholder claimed that customer boxes on the base of the currency are exposed to the same level of risk as the money that was besieged in the collapsed stock exchanges should be the Coinbase file for bankruptcy.
“Despite the repeated data conducted by the company’s management on the contrary, Coinbase was not different regarding the risk of loss of digital assets in the event of bankruptcy.”
In the complaint submitted yesterday, Qouh also claimed that the encryption platform failed to inform investors that she participated in trading ownership in order to compensate for low encryption prices during the 2021 bear market.
Coinbase is still in legal problem with SEC to include unregistered securities
The lawsuit filed yesterday is not the only hot water top that it finds itself. The relevant shareholder also referred to a lawsuit in June 2023 submitted by the US Securities and Stock Exchange Committee (SEC). In the case of SEC, Coinbase was accused of inserting unregistered securities.
This lawsuit was filed during the same time when the Supreme Education Council began to follow up the exchange of encryption to facilitate the trade of what the organizer considered unregistered securities. Although there was no final change in the position of the Supreme Education Council on whether the encryption is securities, many companies operating in the United States find themselves involved in legal cases with SEC.
In addition to the alleged securities list that has not been registered with the Securities and Stock Exchange, the agency’s lawsuit also claims that Coinbase executives, including well -known CEO, Brian Armstrong, sold millions of shares. This led to hundreds of millions of personal profits of Coinbase, according to SEC.
Among some of the CEOs who were named in a lawsuit against GUO, co -founder Farid Arsam, Financial Director Alicia Haas, Coo Emilia Choi, Clo Paul Grewal and Accounting Chairman Jennifer Jones, along with many members of the Board of Directors.
Cryptopolitan Academy: Free Web3 cheating paper – Download now
