The crypto market faced yet another lawsuit before absorbing the shock of the SEC’s lawsuit against Binance. The SEC’s lawsuit against the leading cryptocurrency exchange Coinbase has increased the severity of the shock. However, it turned out that the CEO of Coinbase was busy with other things in the process. Accordingly, coincidentally, CEO Brian Armstrong sold stock the day before the SEC lawsuit.
Coinbase CEO sold shares before SEC lawsuit!
Exchange CEO and co-founder Brian Armstrong was selling shares under a scheme he set up in August that sometimes made him money and sometimes didn’t. The sale on June 5 was still good timing. cryptocoin.comThe United States Securities and Exchange Commission (SEC) has filed a lawsuit against Coinbase for securities law violations. Coincidentally, Armstrong sold his company stock the day before this lawsuit. The transaction caused a small stir in the Twitter crypto world. Because by doing so, Armstrong avoided a sharp loss.
SEC records show that Armstrong sold 29,730 shares of the company on June 5, the day before the SEC lawsuit. Meanwhile, Coinbase’s share price had an initial drop of 20% on the day the lawsuit was filed. However, Armstrong has been selling Coinbase shares regularly since November. It handled the transactions under a 10b5-1 plan adopted in August that predetermined the timing and size of the transactions.
Comparing Coinbase’s stock price with Armstrong’s trading dates, it seems that his trades are not always profitable. So it’s possible that Armstrong made the proceedings before the SEC knew about the lawsuit. On the other hand, it is possible that the SEC was aware of Armstrong’s trading algorithm.
Armstrong lost 12% of his fortune due to SEC lawsuit
Brian Armstrong lost 11.8% of his net worth a day after the SEC action against Coinbase. Thus, his personal fortune fell to 2.2 billion dollars. Meanwhile, Armstrong is ranked 1,409 of the world’s richest by Forbes. It should be noted that he is listed as a person.
Dataroma statistics show that among the company’s executives, only board members Tobias Lutke and Fred Ehrsam bought Coinbase stock last year. Armstrong and Ehrsam were accused in a complaint filed by a Coinbase shareholder in May alleging that they and other Coinbase backers sold shares in an IPO in April 2021 before negative financial information was released and the share price dropped 37%.
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