Coinbase follow-up.
Shareholders have sued the management in Delaware, accusing them of driving up the stock price and then collectively cashing out $42 billion while being aware of compliance failures, system vulnerabilities, and regulatory investigations regarding these critical issues.
This derivative lawsuit actually had signs of emergence back in 2023. At that time, shareholders claimed that the company's decision to go public directly was to provide liquidity for insiders. The board, on the other hand, wanted to suppress the case through a special committee, but this was questioned due to potential conflicts of interest in the investigation itself. The case is still under review.
In 2023, they paid $100 million to New York State to resolve anti-money laundering issues. By 2025, it was reported that data from tens of thousands of users had been leaked, but they had known about this situation months earlier and couldn't handle it anymore, so they decided to relocate directly..
Mainly, they also dare not say they are compliant; they can only say that this place is not suitable for them.
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My largest position: $SOL
