Coinbase Execs Sued for Crypto Listing, Inside Trading (Correct)

Coinbase Global Inc. executives downplayed that customer assets were at risk if it went bankrupt and denied that it listed unregistered securities in violation of federal law, a shareholder derivative lawsuit filed Tuesday alleged.

And current-and-former leadership hid that Coinbase engaged in proprietary trading, said Wenduo Guo’s complaint filed in the US District Court for the District of New Jersey. Proprietary trading of assets with an institution’s own money rather than clients’ lets it earn full proceeds off a trade rather than just commissions, but opened Coinbase up to “heightened risks of financial loss, reputational damage, and regulatory scrutiny,” he ...