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COIN.US
id: 93

Coinbase (COIN) Bankrupt Custodially Held Crypto Assets Case

D. New Jersey
Court
2:22-cv-04915
Case number
14 Apr 2021
Class period Start
05 Jun 2023
Class period End
04 Oct 2022
Lead Plaintiff motion deadline
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.
Case Status
Lead Plaintiff Appointed
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
05 June 2023
Filing date
04 August 2022
Lead Plaintiff Deadline
04 October 2022
Judge
Hon. Brian R. Martinotti
Collecting participants…

Coinbase Global Inc

Coinbase Global, Inc. provides financial infrastructure and technology for the crypto economy in the United States and internationally. The company offers primary financial account in the crypto ec...

    Ticker
    COIN.US
    ISIN
    US19260Q1076
    CIK
    1679788
    Sector
    Financial Services
    Industry
    Financial Data & Stock Exchanges
    Country
    USA
    Address
    251 Little Falls Drive, Wilmington, DE, United States, 19808