Court Allows Coinbase Insider Trading Case to Move Forward

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Court Allows $2.9 Billion Coinbase Insider Trading Case to Move Forward

Written by Aaron S.,

Editor-In-Chief

Last Updated: February 02, 2026

Key Takeaways

A Delaware judge ruled that a shareholder lawsuit accusing Coinbase execs of insider trading will continue despite an internal probe;
The case alleges Brian Armstrong and Marc Andreessen sold $2.9 billion in stock using private info during Coinbase’s 2021 direct listing;
Coinbase said there is no evidence of insider use of confidential data, though the court raised concerns about independence.

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Court Allows $2.9 Billion Coinbase Insider Trading Case to Move Forward

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A judge in Delaware has decided that a lawsuit accusing several Coinbase $3.22B leaders of insider trading can move forward, even though a company review found no wrongdoing.

The case was brought by a Coinbase investor in 2023. It claims that top executives, including CEO Brian Armstrong and board member Marc Andreessen, used private information to avoid major losses when the company went public in 2021.

The lawsuit says insiders sold around $2.9 billion in shares during that time, with Armstrong selling about $291.8 million worth.

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Judge Kathaleen St. J. McCormick of the Delaware Chancery Court refused to dismiss the case on January 30, according to Bloomberg Law.

She said Coinbase’s internal investigation provided a defense but raised doubts about the independence of one committee member who helped conduct the review.

The dispute centers on Coinbase’s decision to go public via a direct listing rather than a traditional IPO. The plaintiff argues this setup gave insiders an unfair chance to sell before prices fell.

Andreessen, through his firm Andreessen Horowitz, is said to have sold about $118.7 million worth of shares. The lawsuit accuses him and other board members of knowing that Coinbase’s valuation was inflated and of selling stock to prevent future losses.

Coinbase and its directors insist there is no proof that they used or acted on confidential company data.

Meanwhile, the US Securities and Exchange Commission (SEC) has officially closed its civil case against Gemini $265.43M Trust Company and Genesis Global Capital. What did the agency say? Read the full story.