Coinbase CEO Sells Shares a Little Before SEC Warning
Brian Armstrong, the CEO of Coinbase, has been selling his company's shares since November 2022, according to recent data shared on Twitter by crypto sleuth @theirish_man.
The data shows that Armstrong facilitated four sales transactions since the beginning of March – on Mar. 3, Mar. 15, and two on Mar. 21.
Concerns raised within the community
The three sales transactions recorded days before the Securities and Exchange Commission (SEC) warning are of particular concern to some within the community, which caused Coinbase shares to drop by 10%. Armstrong sold a total of 89,196 Coinbase shares — which add up to $5,871,561 in value. Almost half of this amount was sold within the 24 hours before the SEC warning.
Armstrong’s selling pattern since November 2022
The data reveals that Armstrong has been selling Coinbase shares almost regularly since November 2022.
He issued two sale transactions per month in November 2022, December 2022, and January. In February and March, he increased the amount sold by making three monthly transactions.
SEC issues a Wells notice to Coinbase
On Mar. 22, the SEC issued a Wells notice to Coinbase, indicating that the regulator has made a preliminary determination to recommend an enforcement action against the exchange.
The filing specifies that the upcoming enforcement action will likely concern parts of Coinbase’s main trading platform and its other services — such as Coinbase Prime and Coinbase Wallet.
Coinbase’s response and support from the crypto community
Upon first response, Coinbase said it is confident in its services and “welcomes a legal process,” indicating that it will fight with the SEC. The crypto community also revealed its stance by rallying behind Coinbase.
Executives of the crypto sphere started to question if the SEC’s warning was a deliberate attempt to stifle the market. At the time of writing, Coinbase share price sits at $77.14 — making an 8.16% fall in price in the last 24 hours.