Coinbase’s Billionaire CEO Says California’s Proposed Wealth Tax Is ‘The Kind Of Thing That Third World Countries Do’ and He May Leave Before New Year’s

Coinbase's billionaire CEO, Brian Armstrong, indicated on live television that he may leave California before the end of the year in response to Proposition 40, a proposed wealth tax. Armstrong, who runs the largest U.S. crypto exchange, expressed concern over the potential for double taxation and seizure of assets, comparing it to practices in third-world countries.

He emphasized that his hope is that cooler heads prevail in California. Proposition 40, if passed, would impose a 5% tax on the net worth of individuals worth $1 billion or more, with revenue going primarily to healthcare, education, and food assistance. Armstrong noted that even if he were to move, he would still owe the tax because the residency test was met almost eight months ago.

The tax applies to anyone who was a California resident on the tax obligation date, January 1, 2026, and reaches trusts funded by a covered individual. Armstrong also expressed skepticism about the effectiveness and efficiency of California's government, mentioning past issues with fraudulent claims and waste.