Coinbase is facing a shareholder lawsuit in Delaware, accusing its executives of concealing regulatory failures and data breaches to enable insider trading. The lawsuit alleges that key figures, including CEO Brian Armstrong and board member Marc Andreessen, sold $4.2 billion in inflated stock by withholding information about KYC/AML compliance issues, ongoing investigations, and a significant data breach. The legal action seeks damages and board representation, highlighting a $100 million settlement in 2023 for anti-fraud lapses and a January 2024 data breach that was only disclosed in May. The plaintiffs argue that these omissions violated fiduciary duties, resulting in investor losses when the stock price fell after the revelations.