Coinbase Execs, Board Face Investor Suit Over Public Offering

July 23, 2021, 6:18 PM

Cryptocurrency exchange Coinbase Global Inc.'s top executives, board, and venture capital investors made false and misleading statements leading up to the company’s April 14 initial public offering, an investor suit says.

The complaint by shareholder Donald Ramsey, filed Thursday in the U.S. District Court for the Northern District of California, alleged that Coinbase CEO Brian Armstrong and others misled investors in offering materials by claiming the company had sufficient cash flow for the next year.

The company announced plans May 17 to raise an additional $1.25 billion in capital through a convertible bond sale.

Coinbase executives also failed to disclose ...

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