Coinbase CEO accused of insider trading in $1.7M stock sale.

The recent accusations of insider trading against Brian Armstrong, the CEO of Coinbase, have caused concern among investors and industry experts. Armstrong sold almost 30,000 shares of his company, worth over $1.7 million, just two days before the Securities and Exchange Commission (SEC) took action against Coinbase.

Investors of Coinbase are questioning the CEO’s decision to sell a large amount of his company’s Class A Common Stock before the SEC complaint. Armstrong made the sale in eight separate transactions, all on the same date, at an average price of $60.3 per share. This has raised doubts among investors about the possibility of insider trading or a planned stock sale by the company’s executives.

Executives at publicly traded companies like Coinbase have been required to follow strict rules about when and how they can trade their company’s stocks since 2021. They are typically required to set up a trading plan, which allows them to schedule sales of their stocks well in advance, at times when they do not possess insider information.

If Armstrong’s sale was made according to his plan, the timing of the sale just a day before the SEC lawsuit was made public would be a coincidence. However, some investors are still concerned about the optics of the sale and the possibility of insider trading.

The ongoing SEC v. Ripple case has significant implications for the cryptocurrency industry, particularly for companies like Coinbase and Binance. According to a lawyer, a ruling in favor of Ripple could undermine the SEC’s case against Coinbase and Binance.

Featured image from Unsplash, chart from TradingView.com

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