Wave of lawsuits against Coinbase due to customer data leak
Cryptocurrency exchange Coinbase has found itself at the center of a scandal following confirmation of a massive leak of customer data, which led to the theft of funds totaling tens of millions of dollars. According to RBC Crypto, the losses are estimated at up to $400 million. Malefactors, having bribed support staff in India, gained access to personal data, including passport details and account balances. In response, the exchange fired those involved and initiated criminal proceedings.
Six class-action lawsuits have been filed against Coinbase in courts in California, New York, and Illinois. Customers accuse the exchange of negligence, concealment of information, and violation of the Biometric Information Privacy Act (BIPA) due to processing selfies and documents without consent. The company's shares fell by 7% following news of the leak and the SEC investigation into potential manipulation of user data.
Coinbase promises to compensate victims for their losses, but the exchange's reputation is at stake. The situation highlights the vulnerability of centralized platforms. Stay tuned for updates and subscribe to #MiningUpdates