A class action lawsuit was filed against Coinbase, alleging securities fraud. The lawsuit was filed in the Californian District Court by the lawfirm Scott + Scott. A shareholder of Coinbase called Donald Ramsey is named as plaintiff. Ramsey is reported to be encouraging other shareholders to join the legal battle against the crypto exchange. Coinbase went public on Nasdaq with a listing of 1,144,850,169 shares of A common class stock. It was subsequently overhyped by the public and attracted a massive interest from retail investors. According to the lawsuit: “According to the complaint, the registration statement and prospectus used to effectuate the company’s offering were false and misleading…At the time of the Offering: (1) the Company required a sizeable cash injection; (2) the Company’s platform was susceptible to service-level disruptions, which were increasingly likely to occur as the Company scaled its services to a larger user base,” These allegations are connected to the crypto exchange raising some 1.25 billion US dollars in May this year. The bond preparation operations as well as a number of technical issues led to a crash of price in stocks. Coinbase’s shares crashed by about 10% and at the moment are valued about 225 US dollars a piece. The lawsuit also names CEO Brian Armstrong and Chief Legal Officer Pau Grewal as culprits and also includes various venture capitals that are behind Coinbase. I was wondering about all the hype around Coinbase’s listing, back when it happened. Now I see what was going on.
If you lost money from investing, you either - spend tons of resources trying to be a better trader - spend your resources filing lawsuit hoping you will win the case
In all fairness their platform was pretty rotten for a while--and still is in some ways. Horrifying customer support (simply not there if you needed help), password system flaky/buggy, doubts about whether they actually hold the crypto assets. Requirement to submit photo ID before able to withdraw crypto (probably some legal mandate, but still annoying when crypto is supposed to be anonymous). I felt like CB was cooked up by Uncle Sam to monitor the crypto markets. Icing on the cake was when one day I logged in and MY BALANCE WENT TO 0!!!! Happened to another guy at work too. Adding insult to injury they didn't even pick up when I called to inquire. Had to send a support email into the void. Took them days to respond and they didn't even acknowledge their error.