Unite with Fellow Investors
Choose the Best Attorney
Follow Case Progress
id: 93, Created by Stan Vick, Scout
Coinbase (COIN) Bankrupt Custodially Held Crypto Assets Case
What do I get by joining?
- You will get case updates and receive a payout in case of success
- If you would like to actively participate, you will be connected to the attorney
- No, you do not pay anything out of your pocket neither to us nor to attorney
D. New JerseyCourt
14 Apr 2021Class period Start
05 Jun 2023Class period End
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 to all stakeholders of the Company and as a result breach of fiduciary duties to them.
Following this disclosure, $COIN fell by 26.4%, seriously damaging shareholders.
Considering all the facts, Investors have grounds to suspect Coinbase and its Executives of failing to disclose important information, which led to their financial losses.
Failure to Disclose,
Shock Event Date
05 June 2023
04 August 2022
Lead Plaintiff Deadline
04 October 2022
Hon. Brian R. Martinotti