Coinbase shareholders have filed a derivative lawsuit accusing insiders, including CEO Brian Armstrong and board member Marc Andreessen, of selling $4.2 billion in stock at inflated prices. They claim the direct listing structure allowed executives to prioritize personal gain over the company’s future. This is not the first time Coinbase has faced such legal action, with a previous lawsuit involving $2.9 billion in stock sales. Shareholders argue that conflicts of interest within the company’s review process hinder impartial evaluation. The board defends the stock sales as normal attempts to monetize investments, but plaintiffs are pushing back against this claim. The lawsuit highlights issues of insularity and patronage within Silicon Valley.

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