Purse on sale – Some Coinbase (COIN) executives have been quick to sell their eponymous shares in recent weeks, raising concern among some observers.
Sale of COIN shares: from the founder to the chief accountant
Coinbase co-founder Fred Ehrsam and his CPO, Surojit Chatterjee, dumped some of their COIN stock, for hefty sums exceeding the $40 million in December 2021, according to a recent SEC filing. Ehrsam and Chatterjee sold for $31,369,991 and $9,007,797 and shares respectively.
The two company executives are not the only ones to have sold shares of the number 1 crypto exchange in December 2021. Chief accountant Jennifer Jones did the same, parting with $253,606 worth of COIN shares.
The previous month, Ehrsam had already sold shares worth over $63 million, November 4, 2021.
During the past three months, the associates have not purchased any COIN shares. However, they separated from over $331 million worth of stock from the exchange.
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Coinbase Executives: Loss of Faith and Regulatory Compliance
How to interpret these sales of Coinbase shares by the thinking heads of the exchange? Although the amounts do not weigh so heavily on the total COIN stock transactions, these sales could be interpreted as a loss of trust by some of the partners.
A Coinbase spokesperson merely justified to The Block media the regulatory compliance of these sales with regard to the SEC’s requirements in this area:
“As repeatedly stated: All Coinbase insider selling is done through pre-approved, pre-programmed 10b5-1 plans that are approved by our management team and Board of Directors, and shared with the SEC. »
These selloffs came at a time when Bitcoin (BTC) and crypto markets were undergoing a correction, while the value of COIN stocks seems to be following the same movement. The COIN stock price dipped below $240 on January 7, 2022, when the stock opened at $381 on its initial listing.
Can Coinbase incur the wrath of regulators with these sales? The exchange seems to be accustomed to legal arm wrestling. Coinbase boss Brian Armstrong was recently sued over a new lawsuitand which could do a lot of damage to its platform.
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