Sale in the middle of a storm – Coinbase CEO Brian Armstrong is parting with a significant amount of his shares in the midst of a FTX crisis.
FTX bankruptcy: Brian Armstrong sells his shares Coinbase
According to an SEC filing, Brian Armstrong sold more 30,000 Class A COIN sharesfor $1.6 million, on November 11.
In this context, it has converted class B shares into class A shares, and it would consider repeating this operation in the coming months. For clarification, Class A shares have a higher priority on dividends and have more voting rights than Class B shares.
This sale of 30,000 COIN shares occurred when FTX filed for Chapter 11 bankruptcy protection in the USA.
In a November 8 post, Coinbase said it had $15 million in deposits on FTX. However, the company would not be exposed to the FTX Token (FTT) and Alameda Research. Coinbase would also have “no loans to FTX”.
From the early days of FTX’s downfall, Brian Armstrong had criticized the crypto exchange, accusing him of “risky business practices”, conflicts of interest, and misusing client funds. However, the turbulence did not prevent the CEO of Coinbase from selling his shares for more than $1 million.
The events of the past week and the bankruptcy of FTX are there to remind us that we must remain cautious in this still very young ecosystem. Get into the habit of healthy distrust. To buy your cryptocurrencies, register nows now on Bitget and start getting acquainted with the exciting world of blockchain technology (commercial link).