{"id":13867,"date":"2025-02-19T10:47:00","date_gmt":"2025-02-19T10:47:00","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=13867"},"modified":"2025-02-19T10:47:00","modified_gmt":"2025-02-19T10:47:00","slug":"coinbase-sued-by-shareholders-for-allegedly-hiding-bankruptcy-risks-and-breaking-securities-laws","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=13867","title":{"rendered":"Coinbase Sued By Shareholders For Allegedly Hiding Bankruptcy Risks And Breaking Securities Laws"},"content":{"rendered":"<div>\n<p><span data-preserver-spaces=\"true\">Coinbase and several of its top executives <\/span><span data-preserver-spaces=\"true\">are facing<\/span><span data-preserver-spaces=\"true\"> a shareholder lawsuit accusing them of misleading investors about the company\u2019s bankruptcy risks and violating securities laws. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The complaint, <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/x.com\/ibcgroupio\/status\/1892069327290920987\" target=\"_blank\" rel=\"noopener nofollow\"><span data-preserver-spaces=\"true\">filed on 18 February 2025 <\/span><\/a><span data-preserver-spaces=\"true\">in a New Jersey federal court by shareholder Wenduo Guo, alleges that Coinbase failed to disclose key information regarding the treatment of customer assets in the event of bankruptcy.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The lawsuit claims that Coinbase\u2019s leadership did not inform investors that customer assets could be included in the company\u2019s bankruptcy estate, potentially leaving retail users as unsecured creditors. <\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">EXPLORE:\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/new-coinbase-listings\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">15 New &amp; Upcoming Coinbase Listings to Watch in 2025<\/span><\/a><\/strong><\/p>\n<h2><span data-preserver-spaces=\"true\">Coinbase Hid Risks Amid Wave of Crypto Exchange Collapses<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Guo argues this omission put investors at risk, citing that 75 cryptocurrency exchanges had collapsed <\/span><span data-preserver-spaces=\"true\">prior to<\/span><span data-preserver-spaces=\"true\"> Coinbase\u2019s public listing in April 2021, leaving many customers unable to recover their funds.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cDespite repeated assurances from management, Coinbase carried similar risks of digital asset loss in the event of bankruptcy,\u201d the complaint states.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In addition to the bankruptcy concerns, the lawsuit alleges Coinbase engaged in proprietary trading\u2014a practice involving the company trading assets using its <\/span><span data-preserver-spaces=\"true\">own<\/span><span data-preserver-spaces=\"true\"> capital to offset declining cryptocurrency prices. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Guo claims this risky strategy was not properly disclosed to investors, potentially inflating Coinbase\u2019s financial performance.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The complaint also references the U.S. Securities and Exchange Commission\u2019s (SEC) lawsuit against Coinbase filed in June 2023, which accused the company of listing unregistered securities and failing to register as a securities exchange.<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">COINBASE EXECS SUED OVER BANKRUPTCY RISKS &amp; SECRET TRADING<\/p>\n<p>Coinbase\u2019s top execs are facing a shareholder lawsuit, accused of downplaying bankruptcy risks and engaging in risky proprietary trading.<\/p>\n<p>The suit claims they misled investors by not disclosing that customer assets\u2026 <a href=\"https:\/\/t.co\/7EOswhDTIZ\" target=\"_blank\" rel=\"nofollow\">pic.twitter.com\/7EOswhDTIZ<\/a><\/p>\n<p>\u2014 IBC Group Official (@ibcgroupio) <a href=\"https:\/\/twitter.com\/ibcgroupio\/status\/1892069327290920987?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">February 19, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span data-preserver-spaces=\"true\">Named defendants in the lawsuit include CEO Brian Armstrong, co-founder Fred Ehrsam, CFO Alesia Haas, COO Emilie Choi, Chief Legal Officer Paul Grewal, and several board members, including Fred Wilson, Mark Andreessen, Kelly Kramer, Gokul Rajaram, Tobias L\u00fctke, and former board member Kathryn Haun. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The suit alleges <\/span><span data-preserver-spaces=\"true\">that executives<\/span><span data-preserver-spaces=\"true\"> sold millions in stock, profiting personally while exposing investors to hidden risks.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Guo seeks damages and corporate governance reforms to prevent similar issues, demanding a jury trial to address the alleged misconduct.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The lawsuit adds to Coinbase\u2019s mounting legal challenges, including an ongoing class-action lawsuit in New York accusing the company of selling unregistered securities without broker-dealer registration.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">EXPLORE:\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/99bitcoins.com\/analysis\/crypto-forecast-best-crypto\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">10 Coins with High Returns: Crypto Forecast 2025<\/span><\/a><\/strong><\/p>\n<h2><span data-preserver-spaces=\"true\">Coinbase Reports Best Quarter in Over a Year<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Coinbase has reported its\u00a0strongest\u00a0quarterly earnings in over a year, fueled by a surge in crypto trading activity following the election of U.S. President Donald Trump.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The\u00a0company\u2019s\u00a0Q4 2024 financial results revealed a total revenue of $2.3 billion, an 88% increase quarter-over-quarter, far surpassing analyst expectations. Net income also saw significant growth, reaching $1.3 billion.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The crypto\u00a0exchange\u2019s\u00a0trading volume soared to $439 billion, exceeding previous forecasts of $404 billion.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Retail and institutional investors\u00a0contributed to the growth, with consumer transaction revenue surging 178% quarter-over-quarter to $1.35 billion and institutional revenue increasing by 155% to $141.3 million.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">EXPLORE:\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/new-cryptocurrency\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Best New Cryptocurrencies to Invest in 2025<\/span><\/a><\/strong><\/p>\n<div class=\"nnbtc-key-takeaways\">\n<h3 class=\"nnbtc-key-takeaways__title\">Key Takeaways<\/h3>\n<ul class=\"nnbtc-key-takeaways__list\">\n<li class=\"nnbtc-key-takeaways__list-item\">\n        <span data-preserver-spaces=\"true\">Coinbase faces a shareholder lawsuit alleging it misled investors about bankruptcy risks.<\/span>    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        <span data-preserver-spaces=\"true\">The complaint claims Coinbase engaged in risky proprietary trading and concealed financial risks while executives allegedly profited from stock sales.<\/span>    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        This lawsuit adds to Coinbase\u2019s mounting legal challenges, including an SEC case.    <\/li>\n<\/ul><\/div>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/coinbase-sued-by-shareholders-for-allegedly-hiding-bankruptcy-risks-and-breaking-securities-laws\/\">Coinbase Sued By Shareholders For Allegedly Hiding Bankruptcy Risks And Breaking Securities Laws<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Coinbase and several of its top executives are facing a shareholder lawsuit accusing them of misleading investors about the company\u2019s bankruptcy risks and violating securities laws. The complaint, filed on 18 February 2025 in a New Jersey federal court by shareholder Wenduo Guo, alleges that Coinbase failed to disclose key information regarding the treatment of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-13867","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/13867","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13867"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/13867\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}