Donald Ramsey has filed an indictment against the cryptocurrency exchange Coinbase. According to the man, the platform misled investors in April this year, when it conducted a direct listing on the NASDAQ stock exchange.
The shareholder applied to Scott + Scott law firm, they will represent his interests.
The defendants in the lawsuit will be: Coinbase CEO Brian Armstrong, the company’s chief lawyer Paul Greval, as well as top managers of the trading platform.
Donald Ramsey said that the leaders of the cryptocurrency exchange made statements that misled investors, moreover, all their statements had no reasonable basis.
During the listing, the platform required large cash funding, but at the same time there were constant disruptions on the site.
Ramsey believes that when the public saw the mismatch between Coinbase’s self-promotion and reality, the share price fell. In addition, in May of this year, the platform announced that it plans to attract additional financing by issuing convertible bonds for $1.25 billion. After that, the company’s shares fell by almost 10%.
We will follow the details, we hope the parties will come to a peaceful solution.