Coinbase chief executive officer Brian Armstrong, chief learning officer Paul Grewal, senior executives, and venture capital backers are facing securities class action suits from civilians who are critical of the company’s alleged business malpractices.
Coinbase is an American company that operates a cryptocurrency platform where users can either buy, sell or store their preferred cryptos. It was founded in 2012 and is a fully regulated and licensed crypto company.
Donald Ramsey, along with other people, has filed a case against Coinbase executives for their alleged deception in financial matters and because of the company’s weak ability to be a reliable trading platform. The complainants’ legal team has submitted their case at the Northern California District Court.
Evidence
According to Ramsey’s legal team, they have already in their possession a set of evidence such as Coinbase’s regulatory documents, analyst reports, company press releases, and publicly disclosed information about Coinbase.
The formal complaint says: “At the time of the Offering: (1) the Company required a sizable cash injection; (2) the Company’s platform was susceptible to service-level disruptions.”
The legal team is highlighting here that there is a high possibility that Coinbase’s system could encounter major disruptions because it has scaled its services on a wider base.
Fall of price shares
Ramsey’s team also said that when the public became aware of the disparities between Coinbase’s claims on its advertisements, and what’s really going on, Coinbase’s price share had sunk immediately.
The team also claims that because of the technical trouble that occurred on Coinbase’s platform, a lot of traders have experienced delays and, worse, loss of funds.
It also includes in its long list of complaints that the cryptocurrency exchange platform’s decision to issue bonds despite its current situation is clearly questionable.
Image courtesy of Cointelegraph News/YouTube
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Source: https://bitcoinerx.com/blockchain/coinbase-executives-face-lawsuits/
