Edelson Lechtzin LLP is Investigating Securities Fraud Claims on Behalf of Coinbase Global
NEWTOWN, PA, August 9, 2022 — The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers of Coinbase Global, Inc. (“Coinbase” or the “Company”) (NASDAQ: COIN) securities between April 14, 2021, and July 26, 2022, inclusive (the “Class Period”).
Investors who purchased Coinbase securities during the Class Period may move the U.S. District Court for the District of New Jersey to appoint them as lead plaintiff, no later than October 3, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Investors who wish to discuss the lead plaintiff selection process should contact Edelson Lechtzin LLP, toll free at 844-696-7492, or by e-mail at [email protected]. A copy of the class action complaint can be viewed on Edelson Lechtzin LLP’s website at www.edelson-law.com or HERE.
Background on the Coinbase Global Inc. Securities Class Action
Coinbase provides financial infrastructure and technology products and services for the cryptocurrency economy (or “crypto economy”) in the U.S. and internationally. The company purportedly offers the primary financial account in the crypto economy for retailers, a marketplace with a pool of liquidity for transacting in crypto assets for institutions, and technology and services that enable trading partners to build crypto-based applications and securely accept crypto assets as payment.
The Complaint alleges that, throughout the Class Period, defendants made false and/or misleading statements related to the Company’s business, operations, and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that:
- Coinbase held crypto assets as custodian for its customers, which assets Coinbase knew or recklessly disregarded could subject such assets as property of a bankruptcy estate in which Coinbase customers would be treated as the Company’s general unsecured creditors;
- Coinbase allowed Americans to trade digital assets that Coinbase knew or recklessly disregarded should have been registered as securities with the U.S. Securities and Exchange Commission (“SEC”);
- the foregoing conduct subjected the Company to a heightened risk of regulatory and governmental scrutiny and enforcement action. As a result, the Company’s public statements were materially false and misleading at all relevant times.
On May 10, 2022, after the markets closed, Coinbase disclosed in its earnings report for the first quarter of 2022, that: “Because custodially held crypto assets may be considered to be the property of a bankruptcy estate, in the event of bankruptcy, the crypto assets we hold in custody 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, Coinbase’s Class A common stock plummeted $19.27 per share, or 26.4%, to close at $53.72 per share on May 11, 2022.
About Edelson Lechtzin LLP
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
Edelson Lechtzin LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Email: [email protected]