Coinbase CEO and co-founder Brian Armstrong sold shares in the company the day before the United States Securities and Exchange Commission (SEC) filed a complaint against the exchange for securities law violations. The transaction caused a bit of a stir in the Twitter cryptoverse, as Armstrong avoided a heavy loss by doing so.
SEC filings show that Armstrong sold 29,730 shares of the company on June 5, the day before the SEC's lawsuit. from Coinbase stock price plummeted on suit day, with an initial drop of 20%.
Armstrong has been selling Coinbase shares regularly since November. He has made transactions under a 10b5-1 plan adopted in August, which determines the timing and size of transactions in advance.
CoinBase CEO Brian Armstrong sold 29,730 shares on June 5, just one day before the SEC's lawsuit was made public, and the stock plunged 20%.
This should be illegal. ♂️
-WhaleWire (@WhaleWire) June 8, 2023
A comparison of Coinbase's share price with Armstrong's trading dates shows that his trades were not always profitable. Therefore, the exchange could have been established before Armstrong learned the news of the SEC action. The SEC, on the other hand, might have been aware of Armstrong's trading algorithm.
armstrong supposedly had lost 11.8% of his net worth the day after the SEC action against Coinbase, which reduced his personal wealth to $2.2 billion. Armstrong has been classified by Forbes as the 1409 richest person in the world.
Related: ARK Invest Buys Coinbase Shares the Same Day the SEC Files Lawsuit
dataroma statistics show that, among company executives, only board members Tobias Lutke and Fred Ehrsam have bought Coinbase shares in the past year. Armstrong and Ersam were sued in a complaint filed by a Coinbase shareholder in May alleging that they and other Coinbase backers sold shares in a public offering in April 2021 before unfavorable financial information was disclosed and the share price fell 37%.
Magazine: Cryptocurrency Trading Addiction: What To Look For And How It Is Treated
Post navigation
