In the wake of popular centralized financial services in crypto falling, such as Celsius and Voyager, Coinbase came on record to state they are far from insolvency. However, market factors did cause some volatile times for the crypto giant, and they went through a round of layoffs about 6 weeks ago. Now, it looks like a big insider trading scheme has caused some of the biggest investors, including Cathie Woods to drop their stock before the SEC investigation causes more bleeding of their stock price.
A former Coinbase Product Manager, along with his brother and a friend, have been arrested and now under investigation on an insider trading scheme, where the PM would inform his brother and friend of pending ICO's (Initial Coin Offering), giving them them chance to purchase as much of the token/coin before Coinbase goes live with the offering. It was a keen eyed Twitter user who eventually saw the pattern, with multiple users replying with more evidence:
We will have to see what happens next, but the SEC has proven that they are jumping on crypto fraud cases quickly, which I hope is a deterrent for the next big schemers thinking they can openly cheat the system!