Cathie Wood Deepens Coinbase’s Woes By Dumping Its Stock

The CEO of Ark Invest, traditionally a crypto bull, is abandoning Coinbase amid federal investigations into the company's securities offerings.

Cathie Wood, chief executive officer and chief investment officer, Ark Invest, speaks during the Milken Institute Global Conference on May 2, 2022 in Beverly Hills, California. (Photo by PATRICK T. FALLON/AFP via Getty Images)

The fallout from last week’s insider trading charges involving a former Coinbase (COIN) employee continues: Bloomberg reports this morning (July 27) that Cathie Wood, the CEO of Ark Invest, dumped Coinbase stock for the first time this year.

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According to the report, “Three Ark Investment Management LLC funds sold slightly over 1.41 million shares, which were worth about $75 million as of Tuesday’s close, according to Ark’s daily trading data compiled by Bloomberg. The firm’s flagship Ark Innovation ETF sold 1.13 million shares.”

In a complaint issued last week, the Securities and Exchange Commission (SEC) stated that at least nine cryptocurrencies traded on Coinbase are securities, even though Coinbase has never registered with the SEC. The company insists that no securities trade on its platform.

Coinbase stock has lost about 25 percent of its value this week.

Cathie Wood Deepens Coinbase’s Woes By Dumping Its Stock