Coinbase CEO Brian Armstrong and Chief Legal Officer Paul Grewal reportedly sold millions of dollars worth of COIN shares in March, just before the US Securities and Exchange Commission (SEC) took action against the crypto exchange.
Selling Nearly $7 Million Worth of COIN Stocks
According to SEC filings by Coinbase, the two executives sold nearly $7 million worth of Coinbase (COIN) stocks in March. But, surprisingly, there were no purchases of Coinbase stocks by the company’s executives in the same period.
Brian Armstrong has sold COIN shares 18 times this month, totaling 89,196 shares worth $5.8 million. Interestingly, he has not purchased COIN shares in the last two years and has been selling more frequently in 2023. This has raised concerns that Armstrong may have insider knowledge of the SEC’s impending action.
Meanwhile, Chief Legal Officer Paul Grewal sold 4,650 COIN shares in March. According to the March 22 filing, he sold 1,485 and 840 Coinbase shares worth $179,056.
In October, Coinbase CEO Brian Armstrong announced that he would sell his 2% stake in Coinbase over the next year to fund science and technology research. He is investing in his co-founded biotechnology company NewLimit and scientific research firm ResearchHub.
Coinbase Receives Wells Notice From SEC
On Wednesday, the SEC issued a Wells Notice to Coinbase over concerns about the listed digital assets, their staking services, and other matters. Brian Armstrong and Paul Grewal have criticized the SEC’s enforcement-led regulatory approach.
Several crypto influencers, including Ripple, have expressed support for Coinbase. Stuart Alderoty, Chief Legal Officer of Ripple, stated that “the enemy of my enemy is my friend.”
Coinbase CEO Brian Armstrong and Chief Legal Officer Paul Grewal’s sale of millions of dollars worth of COIN stocks in March has raised concerns about insider knowledge of the SEC’s actions. However, Ripple and other crypto influencers’ support has relieved Coinbase. Coinbase’s response to the SEC’s Wells Notice is keenly awaited.
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