Have you lost money on your investments in Coinbase Global? If so, please visit Coinbase Global, Inc. Shareholder Class Action or contact Pierre Allocco at (212) 951-2030 or [email protected] to discuss your rights.

NEW YORK, Aug. 05, 2022 (GLOBE NEWSWIRE) — Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired securities of Coinbase Global, Inc. (“Coinbase” or the “Company”) (NASDAQ: COIN) between April 14, 2021 and July 26, 2022, inclusive (the “Class Period”). The lawsuit was filed in the United States District Court for the District of New Jersey and alleges violations of the Securities Exchange Act of 1934.

Coinbase provides financial infrastructure and technology products and services for the cryptocurrency economy (or “cryptoeconomy”) in the United States and around the world. The company allegedly offers the cryptoeconomy’s leading financial account for retailers, a marketplace with a pool of liquidity to transact crypto assets for institutions, and technology and services that enable ecosystem partners to create crypto-based applications and securely accept crypto assets as payment. .

Plaintiff alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations and compliance policies. Specifically, the defendants failed to disclose the following: (i) Coinbase held crypto assets in custody on behalf of its customers, assets that Coinbase knew or recklessly ignored could be considered the property of a bankrupt , which makes these assets potentially subject to bankruptcy proceedings in which Coinbase customers would be treated as general unsecured creditors of the Company; (ii) Coinbase allowed Americans to trade digital assets that Coinbase knew or carelessly ignored should have been registered as securities with the SEC; and (iii) the foregoing conduct has subjected the Company to increased risk of regulatory and governmental scrutiny and enforcement action.

On May 10, 2022, in its quarterly report for the first quarter of 2022, released after market close, Coinbase disclosed that “because crypto assets held in custody may be considered the property of bankrupt estate, in the event bankruptcy, the crypto-assets we hold on behalf of our customers could be subject to bankruptcy proceedings and such customers could be treated as our general unsecured creditors.

Following this disclosure, the Company’s stock price fell $19.27 per share to close at $53.72 per share on May 11, 2022.

In a subsequent tweet commenting on the disclosure, Coinbase CEO, Defendant Brian Armstrong said, “We should have updated our retail terms sooner, and we didn’t proactively communicate when this happened. risk disclosure has been added. My sincerest apologies and a great learning moment for us as we make future changes.

Then, on May 12, 2022, Professor Adam J. Levitin, Professor of Law at Georgetown University Law Center, published a draft of an article titled “Not Your Keys, Not Your Coins: Unpriced Credit Risk in Cryptocurrency,” which should appear. in the Texas Law Review. This draft article argued that in the event of a cryptocurrency exchange filing for bankruptcy, bankruptcy courts will likely consider the deposited cryptocurrency holdings to be the property of the bankrupt exchange, rather as the property of its customers.

Finally, on July 25, 2022, after the markets close, Bloomberg reported that Coinbase was facing an SEC investigation into whether it improperly let Americans trade digital assets that should have been registered as securities.

On this news, the company’s stock price fell $14.14 per share to close at $52.93 per share on July 26, 2022.

If you wish to act as the main plaintiff, you must apply to the court no later than October 3, 2022. A lead plaintiff is a representative party acting on behalf of the other class members to direct the litigation. Your ability to participate in any recovery does not require you to serve as the primary plaintiff. If you choose to do nothing, you can remain an absent member of the group.

If you have purchased or acquired COIN securities, and/or wish to discuss your legal rights and options please visit Coinbase Global, Inc. Shareholder Class Action or contact Pierre Allocco at (212) 951-2030 or [email protected]

Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the firm has been retained by some of the nation’s largest public and private pension funds to oversee their assets and bring lawsuits on their behalf. As a result of its success in hundreds of lawsuits and class actions, the firm has been named to the National Law Journal’s “plaintiffs list” thirteen times and listed in The Legal 500 for ten consecutive years.

LAWYER ADVERTISING. © 2022 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Past results do not guarantee or predict a similar outcome with respect to any future matter.

Contact information:

Pierre Allocco
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
[email protected]