Kirby McInerney LLP | Financial Litigation Law Firm | <h3 >Coinbase Global, Inc.</h3 >
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Coinbase Global, Inc.

The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of those who acquired Coinbase Global, Inc. (“Coinbase”) (NASDAQ: COIN) publicly traded securities between April 14, 2021 through July 26, 2022, inclusive (the “Class Period”). Investors have until October 3, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Coinbase is an online platform that allows merchants, consumers, and traders to transact with digital currency.
On May 10, 2022, in its quarterly report for the first quarter of 2022, released after the markets closed, Coinbase disclosed that: [B]ecause 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. Following this disclosure, the price of Coinbase shares declined by $19.27 per share, or approximately 26.4%, from $72.99 per share to close at $53.72 on May 11, 2022. In a subsequent tweet commenting on the disclosure, Coinbase’s Chief Executive Officer, Defendant 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.”
On July 25, 2022, after the markets closed, Bloomberg reported that Coinbase is facing an SEC probe into whether it improperly let Americans trade digital assets that should have been registered as securities. On this news, the price of Coinbase shares declined by $14.14 per share, or approximately 21.08%, from $67.07 per share to close at $52.93 on July 26, 2022.
The lawsuit alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Coinbase custodially held crypto assets on behalf of its customers, which assets Coinbase knew or recklessly disregarded could qualify as the property of a bankruptcy estate, making those assets potentially subject to bankruptcy proceedings in which Coinbase’s customers would be treated as the Company’s general unsecured creditors; (ii) Coinbase allowed Americans to trade digital assets that Coinbase knew or recklessly disregarded should have been registered as securities with the SEC; (iii) the foregoing conduct subjected the Company to a heightened risk of regulatory and governmental scrutiny and enforcement action; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.

Coinbase Global, Inc. Investor Contact Form