U.S. judge rules that shareholder lawsuit against Coinbase directors for insider trading can proceed

According to Bloomberg, a judge in Delaware has ruled that a shareholder lawsuit against several directors of Coinbase Global Inc., including venture capitalist Marc Andreessen, can proceed, despite an internal investigation that cleared the defendants of wrongdoing.

A shareholder of the cryptocurrency platform filed the lawsuit in 2023, claiming that the directors, including CEO Brian Armstrong, used confidential information to sell more than $2.9 billion in stock during the company's 2021 IPO, thereby avoiding losses of over $1 billion. According to the shareholder's complaint, Brian Armstrong, who has served as CEO since Coinbase's founding in 2012, sold $291.8 million worth of stock.