Coinbase faces renewed legal pressure with a derivative lawsuit from shareholders alleging insider trading. The complaint accuses CEO Brian Armstrong and other board members of selling billions in stock at inflated prices while withholding crucial information about internal issues like anti-money laundering concerns and ongoing regulatory investigations. This follows a previous suit where insiders allegedly dodged $1 billion in losses through stock sales after the 2021 direct listing. The latest lawsuit claims these sales, facilitated by the direct listing structure, prioritized personal gain over company growth. Coinbase maintains the sales were legitimate investments. The battle between shareholders and the company escalates as plaintiffs highlight potential conflicts of interest stemming from board members’ connections to venture capital firms, questioning the impartiality of internal reviews. This latest legal drama adds fuel to a market already grappling with significant negative news, particularly the surge in liquidations on Monday that reached $781 million. Whether this represents another Silicon Valley power struggle or serious accountability, Coinbase insiders are facing increased scrutiny from both shareholders and regulators.