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COIN.US
D. New Jersey
Court
On May 10, 2022, Coinbase disclosed that: “Because custodially held crypto assets may be considered to be the property of a bankruptcy estate, in the event of a bankruptcy, the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings and such customers could be treated as our general unsecured creditors.”
In the following tweet commenting on the disclosure, Coinbase’s CEO, Brian Armstrong stated: “We should have updated our retail terms sooner, and we didn’t communicate proactively when this risk disclosure was added. My deepest apologies, and a good learning moment for us as we make future changes.”
By this statement, Armstrong confirmed failure to disclose materially important information for all stakeholders of the Company and as a result breach of fiduciary duties to them.
Following this disclosure, the price of Coinbase’s stock fell by 26.4%, to close at $53.72 per share on May 11, 2022.
Alleged Offence
Mismanagement
Misleading Statements
Failure to Disclose
Negligence
Breach of Fiduciary duty
Suspected Party
Directors
Management
Service Provider
Security Type
Stocks
Trade Direction
Long
Shock Event Date
10 May 2022
Collecting participants…
Created by Stan Vick, Scout

Coinbase Global Inc

Coinbase Global, Inc. provides financial infrastructure and technology for the cryptoeconomy in the United States and internationally. It offers the primary financial account in the cryptoeconomy f...

    Ticker
    COIN.US
    ISIN
    US19260Q1076
    CIK
    1679788
    Sector
    Financial Services
    Industry
    Financial Data & Stock Exchanges
    Country
    USA
    Address
    1209 Orange Street, Wilmington, DE, United States, 19801