2022-09-09 | NDAQ:CURRENCY | Press release
Securities litigation partner James (Josh) Wilson encourages investors who have suffered losses greater than $100,000 in Coinbase to contact him directly to discuss their options
New York, New York–(Newsfile Corp. – September 9, 2022) – Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Coinbase Global, Inc. (“Coinbase” or the “Company”) (NASDAQ:COIN) and reminds investors of the October 3, 2022 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit that has been filed against the Company.
If you suffered losses greater than $100,000 investing in Coinbase stocks or options between April 14, 2021 and July 26, 2022 and want to discuss your legal rights, call partner Faruqi & Faruqi Josh Wilson directly at 877-247-4292 Where 212-983-9330 (ext. 1310). You can also click here for more information: www.faruqilaw.com/COIN.
There is no cost or obligation for you.
Faruqi & Faruqi is a leading national minority and women-owned securities law firm with offices in New York, Pennsylvania, California and Georgia.
As detailed below, the lawsuit focuses on whether the company and its officers violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1 ) Coinbase held crypto assets on behalf of its customers, which assets Coinbase knew or recklessly disregarded could be considered the property of bankruptcy estate, making those assets potentially subject to bankruptcy proceedings in which Coinbase customers would be treated as general unsecured creditors of the Company; (2) Coinbase allowed Americans to trade digital assets that Coinbase knew or carelessly ignored should have been registered as securities with the SEC; (3) the foregoing conduct has subjected the Company to increased risk of regulatory and governmental scrutiny and enforcement action; and (4) therefore, the Company’s public statements were materially false and misleading at all relevant times.
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 Chairman and CEO, Defendant Brian Armstrong said, “We should have updated our retail terms sooner, and we haven’t communicated in a meaningful way. proactive when this risk disclosure was added. My sincere 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,” which is slated 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 court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class that is adequate and typical of the class members directing and supervising the litigation on behalf of the putative class. Any member of the putative class may ask the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent member of the class. Your ability to participate in any collection is not affected by whether or not to serve as lead plaintiff.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Coinbase’s conduct to contact the company, including whistleblowers, former employees, shareholders and others.
Lawyer advertisement. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Past results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated confidentially.
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