Guo sued Coinbase and its key executives for allegedly violating securities laws. The lawsuit was filed in federal court in New Jersey on February 18, and plaintiff Guo alleges that Coinbase and its executives
The lawsuit alleges that the firm failed to properly inform customers that their assets could be considered bankruptcy property and that retail investors were at risk of becoming unsecured creditors.
The lawsuit alleges that by the time Coinbase went public in April 2021, at least 75 cryptocurrency exchanges had gone bankrupt, resulting in customers withdrawing their digital assets.
"Despite repeated statements to the contrary by management, Coinbase faces the same risk of losing its digital assets in the event of bankruptcy as any other exchange," the company said.
The suit also alleges that Coinbase failed to disclose that it engaged in proprietary trading using its own funds to cover losses from falling cryptocurrency prices.
The lawsuit seeks a jury trial and seeks damages as well as corporate governance measures to prevent similar misconduct in the future.
The lawsuit also names co-founder Fred Ehrsam and CFO Alesia Haas.
Haas, COO Emilie Choi, Chief Legal Officer Paul Grewal,
Chief Accounting Officer Jennifer Jones and board member Fred Wilson
Wilson, Mark Andreessen, Kelly Kramer, Gokul Rajaram
The other members of the board include David Rajaram, Tobias Lütke, and former board member Kathryn Haun.
Meanwhile, Coinbase is also facing a separate class action lawsuit in New York, which alleges that Coinbase sold securities without being registered as a broker-dealer.
has raised the issue.
2025/02/20 12:47 KST
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