The CEO and co-founder of oinbase">Coinbase, Brian Armstrong, divested himself of company shares on the day preceding the United States Securities and Exchange Commission’s (SEC) complaint against the exchange for contraventions of securities laws. This occurrence generated a slight commotion in the crypto verse on Twitter, as Armstrong managed to avert a substantial loss by taking this action.
According to records from the SEC, Armstrong disposed of 29,730 shares of the company on June 5th, which was the day before the SEC initiated legal action. Subsequently, oinbase">Coinbase’s share price experienced a sharp decline, with an initial drop of 20%.
Armstrong has been consistently selling oinbase">Coinbase stock since November, following a 10b5-1 plan that was implemented in August. This plan stipulates the timing and magnitude of transactions in advance.
A comparison of the dates on which Armstrong executed trades with oinbase">Coinbase’s stock price indicates that not all of his trades were lucrative. Therefore, it is plausible that the trade in question was arranged prior to Armstrong’s knowledge of the SEC’s legal action. Alternatively, it is conceivable that the SEC was privy to Armstrong’s trading algorithm.
Reportedly, Armstrong’s net worth had decreased by 11.8% the day following the SEC’s legal action against oinbase">Coinbase, resulting in a reduction of his personal wealth to $2.2 billion. Forbes has ranked Armstrong as the 1,409th wealthiest individual globally.
According to Dataroma statistics, Tobias Lutke and Fred Ehrsam, who are board members, are the only executives who have procured oinbase">Coinbase stock in the past year. In May, Armstrong and Ehrsam were defendants in a lawsuit filed by a oinbase">Coinbase shareholder, which claimed that they, along with other oinbase">Coinbase supporters, had sold shares during a public offering in April 2021, prior to the revelation of unfavorable financial information, resulting in a 37% decline in the share price.
#Business #SEC #BrianArmstrong #CryptocurrencyExchange #Stocks
