Coinbase CEO Brian Armstrong sold nearly 30,000 shares of his company worth over $1.7 million.
Armstrong sold the company’s shares two days before the SEC initiated enforcement action against his exchange.
Fox journalist Eleanor Terrett argued that the alleged dump was part of a pre-planned stock sale.
Last month the company’s executives sold over $2.6 million worth of shares in a single day.
Coinbase’s Chief Executive Brian Armstrong sold thousands of shares earlier this week. The crypto community on Twitter questioned the CEO’s decision to dump his company’s shares in light of the enforcement action initiated against it by the Securities and Exchange Commission (SEC). The questionable stock sale took place just two days before the securities regulator sued the crypto exchange, leading to a double-digit fall in the share price.
Coinbase CEO’s Alleged Stock Dump Part of Pre-Planned Stock Sale?
According to Form 4 filed with the SEC by Brian Armstrong, the Coinbase CEO sold a whopping 29,730 shares on June 5, 2023. The sale took place in 8 separate transactions, all on the same date. Armstrong sold his company’s Class A Common Stock at an average price of $60.3 per share, netting more than $1.7 million. The SEC’s lawsuit against the crypto exchange led to a drop of 20% in the company’s share price, which Armstrong managed to avoid by selling a considerable chunk of his holdings.
Fox Business journalist Eleanor Terrett took to Twitter to share her take on the matter after crypto users accused Brian Armstrong of dumping his shares to avoid the impact of the SEC’s lawsuit. Terrett highlighted that the shares sold by Armstrong were part of a pre-planned stock sale that was initiated in August 2022. As per Terrett, it is common for executives to schedule stock sales on the first Monday of the month or the beginning of the third fiscal quarter.
Reports of the alleged stock dumping emerged just days after multiple Coinbase executives, including Brian Armstrong, sold over $2.7 million worth of shares in a single day. The executives involved Chief Legal Officer Paul Grewal, Chief People Officer Brock Lawrence, Chief Financial Officer Haas Alesia, and company President Choi Emilie.