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COIN.US
id: 93
Coinbase (COIN) Bankrupt Custodially Held Crypto Assets Case
The court has denied the request to dismiss the case, allowing it to proceed.
D. New Jersey
Court2:22-cv-04915
Case number04/14/2021
Class period Start06/05/2023
Class period End10/04/2022
Lead Plaintiff motion deadlineOn May 10, 2022, Coinbase disclosed that: “Because 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.”
In the following tweet commenting on the disclosure, Coinbase’s CEO, Brian Armstrong stated: “We should have updated our retail terms sooner, and we didn’t communicate proactively when this risk disclosure was added. My deepest apologies, and a good learning moment for us as we make future changes.”
By this statement, Armstrong confirmed failure to disclose materially important information to all stakeholders of the Company and as a result breach of fiduciary duties to them.
Following this disclosure, $COIN fell by 26.4%, seriously damaging shareholders.
Considering all the facts, Investors have grounds to suspect Coinbase and its Executives of failing to disclose important information, which led to their financial losses.
Case Status
Motion to dismiss denied
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
06/05/2023
Filing date
08/04/2022
Lead Plaintiff Deadline
10/04/2022
Judge
Hon. Brian R. Martinotti