Get €3000Cathie Wood’s ARK Invest Sells CRCL Stock Amid Circle Lawsuit
Highlights
- Cathie Wood's Ark trimmed its portfolio in the CRCL stock
- The investment firm sold a part of its CRCL stake via the ARKW ETF on Friday.
- The offloading comes as Drift Protocol investors sued Circle over not freezing $230 million in USDC during the April 1 hack.
Cathie Wood’s ARK Invest recently offloaded stake in the Circle Internet Group (NYSE:CRCL). The dump comes as the stablecoin issuer faces a lawsuit for failing to freeze $230 million worth of USDC during the Drift Protocol hack.
Cathie Wood’s ARK Dumps Circle Shares
According to data from Ark Invest Tracker on X, the Cathie Wood-led firm offloaded CRCL shares on Friday, April 17. The offloading came via its ARK Next Generation Internet ETF (ARKB). Data shows that the investment firm sold 11,465 CRCL shares worth $1.21 million.
While the amount is not very high, it could indicate at future moves that ensue as Circle faces uncertainty. Also, the selloff is notable ss Ark Invest barely made any moves this week.
The recent sell comes as the USDC issuer Circle is struggling with a class action lawsuit. On Thursday, a class action lawsuit was submitted in the Massachusetts District Court against Circle.
The legal action came on behalf of Drift Protocol users, who suffered massive losses due to the $280 million hack. For further context, law firm Gibbs Mura, with Joshua McCollum as lead plaintiff, filed this suit.
The Circle lawsuit alleges that stablecoin issuer failed to freeze stolen USDC despite its technical capability and contractual authority. However, Circle CEO Jeremy Allaire has justified the move by saying that they didn’t freeze USDC as their was no law enforcement order. Also, he noted that their move aimed at avoiding “moral quandaries.”
“If there are others that believe that Circle should just step away from what the law says and do its own, make its own decisions, I think it’s a very risky proposition,” he said.
CRCL Stock Price Update
The CRCL share price continued dropping amid Cathie Wood’s dump. On Friday, the Circle stock dipped 1.44% and closed at $105.91 in the previous trading session.
Earlier, on Thursday, before the lawsuit news broke, Circle stock recorded gains as CEO Allaire showed confidence around launch of a yuan-backed stablecoin. At the time, CRCL gained 1.84%, closing at $107.46.
Meanwhile, in the after hours of Friday, the CRCL share fell 0.91% to $104.95. However, analysts believe that the stock has shown resilience despite the legal action. It could partly be attributed to the upsurge in global markets as Iran reopened the Strait of Hormuz.
If you’re looking to make passive income on your crypto, check out our Best Crypto Staking Platforms recommendations list.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
