Coinbase executives sued by shareholders for alleged $4.2 billion insider trading.

According to Mars Finance, on December 2nd, several Coinbase shareholders filed a lawsuit against company executives, accusing them of engaging in insider trading worth billions of dollars over several years. The lawsuit, filed in Delaware, alleges that Coinbase's senior management and investors concealed for years the company's failures in enforcing KYC and Anti-Money Laundering (AML) regulations, its vulnerability to data breaches, and the extent of regulatory investigations into such issues. During the period this information was allegedly concealed, Coinbase insiders, including CEO Brian Armstrong and board member Marc Andreessen, sold $4.2 billion worth of company stock. The plaintiffs claim these proceeds constitute "high-volume insider trading," exploiting an "artificially inflated" share price for Coinbase.