A Delaware judge ruled that a shareholder lawsuit against Coinbase directors can proceed. The suit names CEO Brian Armstrong and board member Marc Andreessen.
The filing alleges executives sold shares using inside information before the company’s public listing. Shareholders claim the sales avoided over $1 billion in losses.
The ruling overrides an internal committee’s investigation that found no wrongdoing and recommended the case be dismissed.
Separately, the broader cryptocurrency market experienced a significant downturn. Bitcoin’s price fell sharply below $81,000.
Continued outflows from Bitcoin ETFs drove the plunge. The market volatility triggered nearly $1 billion in liquidations.
This volatility directly impacts Coinbase’s transaction revenues. Coinbase revenues depend highly on crypto trading volumes and prices.