Yesterday, an investor filed a lawsuit in Delaware Chancery Court, accusing Coinbase's board members, including Chairman and CEO Brian Armstrong, of selling $2.9 billion in stock during the company's public listing two years ago. The lawsuit claims that the board later revealed "material, negative information" that severely impacted market optimism.
In a separate legal issue, another lawsuit was filed in San Francisco on the same day, alleging that Coinbase violated Illinois' biometric privacy law. The complaint asserts that the company collected customer data without obtaining proper consent beforehand.
As Coinbase faces these dual legal challenges, it seems the company is in for a tumultuous ride. It remains to be seen whether these lawsuits are simply part of a fear, uncertainty, and doubt (FUD) storm brewing on the horizon, or if they represent more substantial concerns for the cryptocurrency giant.
