Coinbase Hit With Class Action Lawsuit After Data Breach
The post Coinbase Hit With Class Action Lawsuit After Data Breach appeared on BitcoinEthereumNews.com.
Cryptocurrency exchange Coinbase is the subject of a newly filed class action lawsuit. The lawsuit accuses the company and its top executives, including CEO Brian Armstrong and CFO Alesia Haas, of delaying the disclosure of a major data breach involving insider misconduct and failing to reveal serious regulatory violations in the company’s UK operations. It alleges that Coinbase’s lack of transparency around these incidents led to substantial financial losses for stockholders and seeks compensation for the damages incurred. Coinbase Faces Lawsuit After Stock Price Drops Investor Brady Nessler filed the lawsuit in the US District Court for the Eastern District of Pennsylvania. The suit represents shareholders who purchased Coinbase stock (COIN) between April 14, 2021, and May 14, 2025. The complaint alleges that Coinbase concealed critical information about a data breach. BeInCrypto reported previously that Coinbase faced a $20 million extortion attempt by cybercriminals who stole sensitive customer data, including names, addresses, and identification details. The criminals bribed overseas support agents to steal this data. However, the company stressed that the breach impacted “less than 1%” of its monthly active users. According to court documents, the breach, discovered months earlier, was not disclosed until May 15, 2025, following the extortion attempt. Due to this revelation, COIN fell 7.2%, closing at $244 on the same day. “As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s common shares, Plaintiff and other Class members have suffered significant losses and damages,” Nessler claimed. The lawsuit also highlights another incident that negatively impacted stock prices. On July 25, 2024, the United Kingdom’s Financial Conduct Authority (FCA) publicly fined Coinbase’s UK subsidiary, CB Payments Ltd. (CBPL), £3.5 million (approximately $4.5 million) for breaching a 2020 regulatory agreement that prohibited onboarding high-risk customers. The FCA revealed…
Filed under: News - @ May 26, 2025 5:23 am