Founders

Wenduo Guo, a Coinbase shareholder, has filed a lawsuit in federal court in New Jersey, accusing the exchange of misleading investors about bankruptcy risks and engaging in risky trading.

The lawsuit alleges that Coinbase failed to disclose that customer assets could be part of the bankruptcy estate.

The exchange is also accused of engaging in proprietary trading without informing investors and of senior executives using inside information to sell shares.

The lawsuit seeks damages and reforms in the company’s management to prevent future violations.