Coinbaseâs board probably thought Thanksgiving was about gravy and family drama⌠turns out itâs a side dish to a full-course legal feast served by shareholders who clearly never heard of âgratitude.â đŚâď¸
- Shareholders are now playing âWhereâs Waldo?â but with insider stock sales and a side of âOops, forgot to mention the regulatory trainwrecks weâre hiding!â đ
- This isnât the first time Coinbaseâs execs have turned âsell-offâ into a two-part Netflix series-because who doesnât want to binge-watch financial misconduct? đż
- Plaintiffs claim the internal review was so biased it couldâve been a family reunion at a law firm. Silicon Valleyâs âinsularityâ apparently means âwe all know each otherâs secretsâ-and theyâre not sharing. đ¨âđŠâđ§âđŚ
Filed in Delaware (because why not?), the complaint accuses CEO Brian Armstrong, Marc Andreessen, and friends of selling $4.2 billion in stock at âinflated pricesâ while keeping the public clueless about things like âOh, by the way, our anti-money-laundering controls are basically a screensaver.â đľď¸âď¸
Not Coinbaseâs first brush with derivative drama
Coinbaseâs legal buffet just got a sequel. Last time, shareholders sued over $2.9 billion in sales after the 2021 direct listing-because who needs profits when you can monetize your IPO like itâs a Black Friday sale? đď¸
In the latest filing, plaintiffs argue insiders prioritized their wallets over the companyâs future, using the direct listing structure to sell stock like itâs hot-while the rest of us are left holding the cold, regulatory fire. đĽ
Coinbaseâs board insists the sales were ânormal attempts to monetize long-held investments,â which sounds fancy until you realize âlong-heldâ just means âweâve had this stock since the â10s and still didnât see the crash coming.â The rebuttal even mentions the company was âexceptionally well-capitalizedâ-code for âweâre rich, sue us anyway.â đ¸
Plaintiffs, though, are salty. Their 72-page rebuttal calls Silicon Valleyâs âinsularity and patronageâ a âgossip mill with a law degree,â and honestly? Theyâre not wrong. đľď¸âď¸
Whether this is just another day in Silicon Valley or a cry for help, one thingâs clear: Coinbaseâs execs are about to learn that âmonetizing long-held investmentsâ sounds a lot like âexplaining away greedâ in legal terms. đ
Next, the body. The opening paragraph mentions Thanksgiving and a derivative lawsuit. Larry David might compare the board’s expectation of a peaceful holiday to the shareholders’ legal attack. Maybe something like, “Coinbaseâs board probably thought Thanksgiving was about gravy and family drama… turns out itâs a side dish to a full-course legal feast served by shareholders who clearly never heard of âgratitude.â”
The first point about selling stock at inflated prices. Add sarcasm: “Shareholders are now playing âWhereâs Waldo?â but with insider stock sales and a side of âOops, forgot to mention the regulatory trainwrecks weâre hiding!â” The second bullet about the previous lawsuit: “This isnât the first time Coinbaseâs execs have turned âsell-offâ into a two-part Netflix series-because who doesnât want to binge-watch financial misconduct?” The third bullet about conflicts of interest: “Plaintiffs claim the internal review was so biased it couldâve been a family reunion at a law firm. Silicon Valleyâs âinsularityâ apparently means âwe all know each otherâs secretsâ-and theyâre not sharing.”
In the body paragraphs, the part about the CEO and board members selling stock: “The lawsuit claims Coinbaseâs top brass sold $4.2 billion in stock while keeping the rest of us in the dark about things like âOh, by the way, our anti-money-laundering controls are basically a screensaver.â”
When mentioning the previous lawsuit, add a joke: “Coinbaseâs board might as well start charging admission-this legal saga has more episodes than a true crime docuseries.”
The rebuttal from Coinbase’s board: “The boardâs defense? âItâs just normal investing!â Yeah, like robbing a bank is ânormalâ if you wear a suit while doing it.”
The conclusion: “Whether this is just another day in Silicon Valley or a cry for help, one thingâs clear: Coinbaseâs execs are about to learn that âmonetizing long-held investmentsâ sounds a lot like âexplaining away greedâ in legal terms.”
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2025-12-02 02:45