PANews reported on March 6th that, according to The Block, Coinbase shareholder Kevin Meehan has filed a shareholder derivative lawsuit on behalf of the company, accusing CEO Brian Armstrong and other executives of making misleading statements between April 2021 and June 2023, failing to adequately disclose risks related to customer asset custody, securities law risks associated with token listings, and anti-money laundering compliance deficiencies. Defendants include co-founder Fred Ehrsam, Chief Legal Officer Paul Grewal, President and COO Emilie Choi, and several board members.

The lawsuit alleges that Coinbase's user agreement states that assets in escrow wallets are "assets held by the company on behalf of customers," but fails to disclose that these assets could be included in the bankruptcy estate if the company goes bankrupt, potentially turning retail users into unsecured creditors. Furthermore, the lawsuit claims that the company's listing review process "ensures that no securities appear on the platform," yet some tokens still face securities risks. The lawsuit also accuses several executives of using undisclosed information to sell shares before and after the company's direct listing in 2021.