According to Cointelegraph, cryptocurrency exchange Coinbase and its executives are facing a class-action lawsuit from investor Brady Nessler due to a data breach incident and undisclosed violations of UK regulations. The lawsuit points out that the data breach in May led to a 7.2% drop in stock price in a single day, while a $4.5 million fine imposed in July 2024 for violating UK FCA agreements also caused stock price fluctuations. Coinbase previously disclosed that internal personnel were bribed to leak user data, potentially causing a loss of $400 million.
This is the first class-action lawsuit seeking compensation for Coinbase's stock price decline, covering stock buyers from April 2021 to May 2025. The lawsuit alleges that the company failed to timely disclose regulatory violation information, which allegedly inflated the stock price. Coinbase has not yet commented. Previously, the platform has faced multiple lawsuits due to data breaches, including allegations of mishandling user biometric data.