PANews, May 26 - According to Cointelegraph, the cryptocurrency exchange Coinbase and its executives have been sued by investor Brady Nessler in a class action lawsuit due to a data breach incident and undisclosed regulatory violations in the UK. The lawsuit states that the data breach in May caused a 7.2% drop in stock prices in a single day, and a $4.5 million fine for violating UK FCA regulations in July 2024 also caused stock price fluctuations. Coinbase previously disclosed that internal personnel were bribed to leak user data, potentially resulting in a $400 million loss.
This is the first class action lawsuit seeking damages for the drop in Coinbase's stock price, covering stock buyers from April 2021 to May 2025. The lawsuit accuses the company of failing to timely disclose regulatory violation information, allegedly inflating stock prices. Coinbase has not yet commented. The platform has previously faced multiple lawsuits due to data breaches, including allegations of mishandling user biometric data.
