Delaware stockholders filed a lawsuit accusing Coinbase executives and investors—named defendants include CEO Brian Armstrong, board member Marc Andreessen and CLO Paul Grewal—of hiding yearslong KYC/AML compliance failures, an internally known customer data breach, and ongoing regulatory probes while insiders sold about $4.2 billion of stock at allegedly inflated prices. Plaintiffs cite knowledge of a NYDFS probe that produced a $100 million settlement in early 2023 and say misleading public statements propped up the stock; they seek multi‑billion damages, board seats and stronger governance. The suit was filed just before Thanksgiving as Coinbase plans to move its domicile from Delaware to Texas.

Plaintiffs allege executives concealed KYC/AML control failures, an internally known customer data breach and regulatory probes (including a NYDFS matter that led to a $100M settlement) while insiders sold ~ $4.2B of stock; they seek multi‑billion damages and governance changes—facts that directly question company disclosures and could affect the stock.