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Coinbase CEO’s $1.8M Stock Sale Raises Eyebrows Amid SEC Lawsuit

Coinbase CEO Brian Armstrong sold $1.8 million of company shares on June 5th statistics From Dataroma, its shares dropped more than 15% on June 6 ahead of news of the US Securities and Exchange Commission’s (SEC) lawsuit against the company.

roughly 30k shares sold

According to data from Dataroma, Armstrong sold 29,730 Coinbase shares in eight transactions on June 5, at sales prices between $56.70 and $63.79.

COIN shares fell more than 15% to less than $50 on June 6. At press time, it was down 3.22% from Armstrong’s lowest selling price to $54.90.

the sale was pre-planned

These sales were extended until the SEC lawsuit concerns among the crypto community that he had prior knowledge of the lawsuit.

Fox Business reporter Eleanor Terrett rejected The sale of stock was pre-planned through August 2022 in compliance with SEC Rule 10b5-1.

According to InvestopediaCompany insiders can use Rule 10b5-1 to set up predetermined plans to sell stock, including details such as price, quantity and date. However, insiders must certify that they were unaware of non-public information.

Terret added:

“Setting up sales to happen on the first Monday of the month/beginning of the third fiscal quarter, I’m told, is not very unusual.”

past sales of armstrong

Meanwhile, this recent sale is similar to Armstrong’s previous sale. cryptoslate The report states that Armstrong sold 89,196 Coinbase shares for $5.8 million in March. At that time, almost half of these sales took place 24 hours before the US SEC issued a warning to the exchange.

The Coinbase CEO also sold $1.8 million worth of company shares in April.

However, this selling trend started in November 2022 when Armstrong pledged to sell 2% of his stake in the crypto firm to fund scientific research and development through two startups – NewLimit and Research Hub.

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