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Coinbase CEO and co-founder Brian Armstrong sold shares of the company a day before the United States Securities and Exchange Commission (SEC) filed a complaint against the exchange for securities law violations. The transaction caused a minor stir in the Twitter cryptoverse, as Armstrong avoided a sharp loss by doing so.
SEC record Show That Armstrong sold 29,730 shares of the company on June 5, the day before the SEC suit. Coinbase’s share price fell on the day of the suit, with an initial drop of 20%.
Armstrong has been regularly selling Coinbase stock since November. she has made The business adopted in August under a 10b5-1 plan, which stipulates the timing and size of transactions in advance.
Coinbase CEO Brian Armstrong dumped 29,730 shares on June 5, just a day before the SEC lawsuit became public, and shares fell 20%.
It should be illegal.
— WhaleWire (@WhaleWire) June 8, 2023
A comparison of Coinbase’s stock price with Armstrong’s trading dates shows that his trades were not always profitable. Thus, the trade could have been established before news of the SEC action became known to Armstrong. The SEC, on the other hand, may have been aware of Armstrong’s trading algorithm.
Armstrong reportedly lost 11.8% of his net worth following the SEC action against Coinbase, bringing his personal wealth to $2.2 billion. Armstrong has been rank as the 1,409th richest person in the world by Forbes.
Related: ARK Invest Buys Coinbase Shares on Day of SEC Lawsuit
dataroma data Show that, among the company’s executives, only board members Tobias Lutke and Fred Ehrsam have bought Coinbase stock in the past year. Armstrong and Ehrsam were defendants in a complaint filed in May by a Coinbase shareholder alleging that he and other Coinbase supporters sold shares in an April 2021 public offering before adverse financial information was disclosed and the shares were sold. The price fell by 37%.
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