$4.2 billion cash-out controversy: An executive from a leading exchange is accused of concealing data breaches and compliance failures.

[Bitu] A prominent exchange has recently found itself in serious trouble. Shareholders have filed a lawsuit in a Delaware court, targeting CEO Brian Armstrong and board members such as Marc Andreessen, accusing them of deliberately concealing significant vulnerabilities in the company's KYC and AML compliance, as well as the real situation regarding data leak risks and regulatory investigations for years. Worse still, this group cashed out $4.2 billion worth of stocks while the stock price was artificially inflated.

The plaintiff revealed that as early as January this year, the exchange knew that hackers had obtained users' sensitive information through a third-party customer service provider, but it wasn't until May that they publicly announced the data breach. Now, shareholders not only want to claim billions of dollars in compensation but also seek board seats to directly intervene in company policy. Interestingly, this exchange just announced last month that it plans to move its headquarters from Delaware to Texas, which is more friendly to cryptocurrencies. Is it a coincidence or an early exit?