2022-08-04 | NDAQ: CURRENCY | Press release

Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed against Coinbase Global, Inc. (“Coinbase” or the “Company”) (NASDAQ: COIN) in the District of the United States District Court of New Jersey on behalf of all persons and entities who purchased or otherwise acquired Coinbase securities between April 14, 2021 and July 26, 2022, both dates inclusive (the “Class Period and CloseCurlyDoubleQuote;). Investors have until October 3, 2022 to ask the Court to be named lead plaintiff in the lawsuit.

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Coinbase provides financial infrastructure and technology products and services for the cryptocurrency economy (or “cryptoeconomy”) in the United States and around the world. The company allegedly offers the cryptoeconomy’s leading financial account for retailers, a marketplace with a pool of liquidity to transact crypto assets for institutions, and technology and services that enable ecosystem partners to build crypto-based applications and securely accept crypto assets as payment.

On May 10, 2022, in its quarterly report for the first quarter of 2022, released after market close, Coinbase disclosed that: “[B]Since crypto assets held in custody may be considered the property of a bankruptcy estate, in the event of bankruptcy, crypto assets held by us in custody on behalf of our clients could be subject to bankruptcy proceedings. bankruptcy and these customers could be treated as our general unsecured creditors.”

Following this disclosure, the price of Coinbase’s Class A common stock fell $19.27 per share, or 26.4%, to close at $53.72 per share on May 11, 2022.

In a subsequent tweet commenting on the disclosure, Coinbase CEO, Defendant Brian Armstrong said, “We should have updated our terms and conditions sooner, and we haven’t proactively communicated. when this risk disclosure was added. My deepest apologies and a great learning moment for us as we make future changes.”

On May 12, 2022, Professor Adam J. Levitin, Professor of Law at Georgetown University Law Center, published a draft of an article titled “Not Your Keys, Not Your Coins: Unpriced Credit Risk in Cryptocurrency,” set to appear in the Texas Law Reviewwhich argues that in the event of a cryptocurrency exchange filing for bankruptcy, bankruptcy courts will likely consider the deposited cryptocurrency holdings to be the property of the bankrupt exchange, rather than the property of his clients.

Then, on July 25, 2022, after the markets close, Bloomberg reported that Coinbase was facing an SEC investigation into whether it improperly let Americans trade digital assets that should have been registered as securities.

On this news, the price of Coinbase’s Class A common stock fell $14.14 per share, or 21.08%, to close at $52.93 per share on July 26, 2022.

The Complaint alleges that throughout the Class Period, the Defendants made materially false and misleading statements regarding the company’s business, operations and compliance policies. Specifically, the Defendants made false and/or misleading statements and/or failed to disclose that: (i) Coinbase held crypto assets in custody on behalf of its customers, assets that Coinbase knew or recklessly did not know were could be considered the property of a bankruptcy, making the assets potentially subject to bankruptcy proceedings in which Coinbase customers would be treated as general unsecured creditors of the Company; (ii) Coinbase allowed Americans to trade digital assets that Coinbase knew or carelessly ignored should have been registered as securities with the SEC; (iii) the foregoing conduct has subjected the Company to increased risk of regulatory and governmental oversight and enforcement action; and (iv) as a result, the Company’s public statements were materially false and misleading at all material times.

If you purchased or otherwise acquired Coinbase stock and suffered a loss, are a long-term shareholder, have information, want to know more about such claims, or have questions about this announcement or your rights or interests in these questions, please contact Brandon Walker or Melissa Fortunato by email at [email protected], by phone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation for you.

About Bragar Eagel & Squire, PC:

Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation before state and federal courts across the country. For more company information, please visit www.bespc.com. Lawyer advertisement. Prior results do not guarantee similar results.

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