According to online reports, Cointelegraph reported that Coinbase shareholder Wenduo Guo filed a lawsuit in the federal court of New Jersey on February 18, accusing the cryptocurrency exchange and its executives of violating securities laws and allegedly concealing information related to bankruptcy risks from investors. The lawsuit alleges that Coinbase and its management did not disclose the risk that user assets could be treated as bankruptcy assets, which would make retail users unsecured creditors. The indictment also stated that before the company's listing in April 2021, at least 75 cryptocurrency exchanges closed down, making it impossible for users to recover digital assets. In addition, the lawsuit alleges that Coinbase did not disclose how it conducted proprietary trading in response to falling cryptocurrency prices. The indictment targets multiple executives and board members, including CEO Brian Armstrong. The plaintiff asked for a jury trial and sought damages and corporate governance reform.