Coinbase CEO Sells Shares Ahead of SEC Complaint: 35% Price Drop

• Coinbase shares dropped 35% after SEC sued crypto exchange
• CEO Brian Armstrong sold 29,730 shares of the company a day before the complaint was issued
• Fox Business journalist says it was a perfectly legal sale according to Rule 10b5-1(c)

SEC Sues Crypto Exchange Coinbase

Coinbase Global Inc. experienced a drop in its share price following the U.S. Securities and Exchange Commission’s (SEC) lawsuit against the crypto exchange.

CEO Brian Armstrong Sold Shares Ahead of Lawsuit

The sell-off was slightly less damaging to CEO Brian Armstrong who had sold over 29,000 shares of the company just one day prior to the SEC’s complaint. This raised questions as to whether this action was related to insider trading or not.

Fox Business Journalist Says Sale Was Legal

A Fox Business journalist, Eleanor Terret, said that this sale was legal due to it being part of a pre-planned stock sale initiated in August 2022 that complied with Rule 10b5-1(c). Despite this explanation, some members of the cryptocurrency community were dissatisfied with these events and expressed their views on social media platforms such as Twitter.

Increased Ethereum Withdrawals from Coinbase

As a result of the SEC lawsuit, Coinbase saw an increase in Ethereum withdrawals from its platform this week. This could be attributed to users wanting to take out their funds before any potential consequences are imposed by regulators on the crypto exchange.

Current Status of Coinbase Shares

Currently, Coinbase shares are down 35% compared to their year-to-date high and investors will be watching closely for any future developments regarding both the SEC lawsuit and Brian Armstrong’s planned stock sales.