Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international securities and consumer rights litigation firm, is investigating whether certain directors and officers of Coinbase Global, Inc. (“Coinbase”) (NASDAQ: COIN) breached their fiduciary duties to Coinbase and its shareholders. If you are a Coinbase shareholder, you may contact attorney Joe Pettigrew for additional information toll-free at 844-818-6982 or jpettigrew@scott-scott.com.
Scott+Scott is investigating whether members of the Coinbase Board of Directors (the “Board”) made, or caused Coinbase to make, false and/or misleading statements, as well as failed to disclose materially adverse facts, about Coinbase’s business, operations, prospects, and financial health. Specifically, Scott+Scott is investigating whether the Board failed to disclose material information, including whether: (i) Coinbase custodially held crypto assets on behalf of its customers, which assets Coinbase knew or recklessly disregarded could qualify as the property of a bankruptcy estate, making those assets potentially subject to bankruptcy proceedings in which Coinbase’s customers would be treated as the Company’s general unsecured creditors; (ii) Coinbase allowed Americans to trade digital assets that Coinbase knew or recklessly disregarded should have been registered as securities with the SEC; (iii) the foregoing conduct subjected the Company to a heightened risk of regulatory and governmental scrutiny and enforcement action; and (iv) as a result, statements about Coinbase’s business, operations, and prospects lacked a reasonable basis.
On May 10, 2022, in its quarterly report for the first quarter of 2022, released after the markets closed, Coinbase disclosed that: “[B]ecause custodially held crypto assets may be considered to be the property of a bankruptcy estate, in the event of a bankruptcy, the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings and such customers could be treated as our general unsecured creditors.” On this news, the price of Coinbase’s stock fell $19.27 per share, or 26.4%, to close at $53.72 per share on May 11, 2022.
On July 25, 2022, after the markets closed, Bloomberg reported that Coinbase was facing an Securities and Exchange Commission probe 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
What You Can Do
If you are a Coinbase shareholder, you may have legal claims against Coinbase’s directors and officers. If you wish to discuss this investigation, or have questions about this notice or your legal rights, please contact attorney Joe Pettigrew toll-free at 844-818-6982 or jpettigrew@scott-scott.com.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and consumer rights actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, California, and Ohio.
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Contacts
Joe Pettigrew
Scott+Scott Attorneys at Law LLP
600 W. Broadway, Suite 3300, San Diego, CA 92101
844-818-6982
jpettigrew@scott-scott.com
