Coinbase Insiders Sued for Dumping Stock, Saving $1 Billion (1)

Coinbase Inc. Chairman and Chief Executive Officer Brian Armstrong, board member Marc Andreessenand other officers avoided more than $1 billion in losses by using inside information to sell stock within days of the cryptocurrency platform’s public listing two years ago, before bad news sent the share price tumbling, according to a lawsuit filed by an investor.

The company’s board deployed a so-called direct listing instead of a more typical initial public offering and rapidly sold off $2.9 billion in stock before Coinbase management later revealed “material, negative information that destroyed market optimism from the company’s first quarterly earnings ...