Coinbase CEO’s $1.8 million stock sale raises eyebrows amid SEC lawsuit

Coinbase CEO’s $1.8 million stock sale raises eyebrows amid SEC lawsuit
фото показано с : cryptoslate.com

2023-6-9 14:28

Coinbase CEO Brian Armstrong sold $1.8 million worth of company shares on June 5, according to data from Dataroma, before news of the U.S. Securities and Exchange Commission (SEC) lawsuit against the company tanked its shares by more than 15% on June 6.

The SEC alleges Coinbase operated as an unregistered broker, exchange, and clearing agency. The regulator further alleged that its staking program qualifies as an unregistered securities offering. The platform has stated it would defend itself in court.

Roughly 30k shares sold

Armstrong sold 29,730 Coinbase shares in eight transactions on June 5, with the selling prices ranging between $56.70 and $63.79, according to the Dataroma data.

COIN shares dropped by over 15% to less than $50 on June 6. As of press time, it had slightly recovered to $54.90 — down 3.22% from Armstong’s least selling price.

Brian Armstrong Coinbase Share Sales (Source: Dataroma) Sales were pre-planned

The timing of these sales leading up to the SEC lawsuit raised concerns among the crypto community that he had prior knowledge of the lawsuit.

Fox Business journalist Eleanor Terrett dismissed these speculations, saying the stock sales were pre-planned since August 2022 in compliance with the SEC’s Rule 10b5-1.

According to Investopedia, company insiders can use Rule 10b5-1 to establish predetermined plans for selling stock, including details like price, quantity, and date. However, the insiders must certify that they are unaware of nonpublic information.

Terrett added:

“Setting a sale to happen on the 1st Monday of the month/start of the 3rd fiscal quarter, I’m told, isn’t too unusual.”

Armstrong’s previous sales

Meanwhile, this recent sale is similar to Armstrong’s previous selloffs. CryptoSlate reported that Armstrong sold 89,196 Coinbase shares for $5.8 million in March. At the time, almost half of these sales were made  24 hours before the U.S. SEC issued a warning to the exchange.

The Coinbase CEO also sold $1.8 million worth of the company’s stocks in April.

However, this sales trend began in November 2022 when Armstrong pledged to sell 2% of his stake at the crypto firm to fund scientific research and development through two startups — NewLimit and Research Hub.

The post Coinbase CEO’s $1.8 million stock sale raises eyebrows amid SEC lawsuit appeared first on CryptoSlate.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Ceocoin (CEO) на Currencies.ru

$ 0.00304614 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Доступно / Всего 0 CEO

company lawsuit shares coinbase sec june ceo

company lawsuit → Результатов: 126


Layer1 CEO accuses founder of running it as his ‘own personal fiefdom’

San Francisco-based Bitcoin mining company Layer1 Technologies has been hit with a lawsuit by its own CEO John Harney and investment firm, DGF Investments.  The complaint accuses Layer1’s founder Jakov Dolic and board member Tobias Ebel of exploiting an alleged state of corporate paralysis at the Swiss private equity firm Enigma Holding (Layer1’s parent company) […] The post Layer1 CEO accuses founder of running it as his ‘own personal fiefdom’ appeared first on CryptoSlate.

2023-2-7 14:45


Yuga Labs Reaches Settlement in Bored Ape NFTs Trademark Lawsuit

Yuga Labs, the parent company of the Bored Ape Yacht Club NFT project, has reached a settlement with Thomas Lehman, who built websites and smart contracts for Ryder Ripp’s copycat project “RR/BAYC.” Ripps’ project is a series of 10,000 NFTs that share the same names, features and traits as the famous Bored Ape Yacht Club NFTs and is part of a separate, ongoing court case around trademark infringement.

2023-2-7 19:59


CryptoSlate Wrapped Daily: Grayscale taking SEC to court over spot BTC ETF, CoinCenter sues US Treasury for Tornado Cash ban

The biggest news in the cryptosphere for October 12 includes Grayscale’s lawsuit against the SEC for not approving a United States spot Bitcoin ETF, CoinCenter’s lawsuit against the United States Treasury for overstepping its legal authority by banning Tornado Cash, and Arbitrium’s parent company Offchain Labs’ acquisition of leading Ethereum client Prysmatic Labs.

2022-10-13 00:01