coinbase

U.S. cryptocurrency exchange Coinbase is under fire—this time in the form of a class action lawsuit. Investor Brady Nessler claims the company withheld crucial information about a serious data breach and failed to disclose regulatory issues in the UK, ultimately harming shareholders.
According to the lawsuit, Coinbase deliberately delayed disclosing a security incident that compromised customer data and failed to properly inform investors about a $4.5 million fine imposed by the UK’s Financial Conduct Authority (FCA). Both events allegedly had a negative impact on stock value and investor trust.

Data breach and extortion: details emerged too late
Coinbase reportedly fell victim to a sophisticated cyberattack during which hackers obtained sensitive client data, including names, addresses, and identification information. The attackers allegedly bribed foreign support staff to gain access.
More troubling, the lawsuit states Coinbase kept this incident hidden from the public. It wasn’t until May 15, 2025—months after the breach—that the company confirmed a $20 million extortion attempt. On that same day, Coinbase stock dropped sharply by 7.2%, closing at $244 per share.
“By keeping this hidden, investors lost millions. Coinbase breached its duty to inform shareholders and caused serious harm,” the lawsuit claims.

Second blow: fine from UK regulators
The lawsuit also references a July 2024 fine from the FCA, imposed on Coinbase’s British subsidiary, CB Payments Ltd. The regulator found that CBPL allowed access to over 13,000 high-risk users in violation of a 2020 agreement banning such onboarding.
As a result, nearly $226 million in crypto transactions were processed illegally. When this fine was announced, Coinbase’s stock fell 5.52% to $231.52 per share.

Lawsuit demands: compensation and a trial
Nessler is requesting class action status for the suit and is seeking financial compensation for all shareholders who purchased COIN stock between April 2021 and May 2025. He is also asking for legal fees to be covered and for the case to go to jury trial.
Coinbase has not yet issued a public response. Since the disclosure, COIN shares have partially recovered but still dropped 3.23% on May 23, closing at $263.10, according to Yahoo Finance.

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Crypto giant Coinbase Global Inc. has landed in hot legal waters. A class action lawsuit filed on May 22 accuses the company — along with CEO Brian Armstrong and CFO Alesia Haas — of misleading investors by hiding a major data breach and serious regulatory failures in its UK operations.
📉 The Fallout: Stock Plunge & Investor Losses
The lawsuit, led by plaintiff Brady Nessler, covers investors who bought Coinbase stock between April 14, 2021 and May 14, 2025. It claims that Coinbase delayed disclosing insider misconduct, which artificially inflated the company’s stock. When the breach was finally revealed in May, the stock plunged over 5%, wiping out millions in investor value.
🕵️‍♂️ Regulatory Breach in the UK: A Hidden Scandal?
Coinbase’s UK subsidiary, CB Payments Ltd., allegedly breached a 2020 agreement with the UK’s Financial Conduct Authority (FCA) meant to prevent criminal misuse of its platform. The suit claims this led to the onboarding of over 13,000 high-risk users, significantly increasing Coinbase’s legal exposure.
💻 Remote-First or Risk-First?
The lawsuit also criticizes Coinbase’s “remote-first” structure, pointing out that the company has no physical headquarters and operates mostly online. Plaintiffs argue this contributed to weak internal governance, poor oversight, and a lack of transparency in disclosing risks.
⚖️ What Plaintiffs Want
The investors are seeking compensation for their financial losses and demanding a jury trial. The suit accuses the leadership of either knowingly hiding the truth or acting with reckless disregard for their responsibilities to the investing public. #MarketRebound #coinbase
🗣️ As of now, Coinbase has not responded publicly to the allegations.

Amid swirling speculation in the crypto industry, Circle—the issuer of the USDC stablecoin—has firmly denied any plans to sell itself to Ripple Labs or Coinbase. The statement, delivered via a company spokesperson to PYMNTS, directly addressed reports suggesting informal talks were underway for a potential $5 billion acquisition.

The rumors have been gaining traction over recent weeks, fueled by detailed reports from prominent outlets. Fortune reported that Circle was exploring a sale at the same $5 billion valuation it seeks for its upcoming IPO. Bloomberg further claimed Ripple had already floated an offer in the $4–$5 billion range, which Circle allegedly declined. Following Ripple’s approach, Coinbase was said to have shown interest, sparking talk of a potential bidding war between two of the most influential players in the U.S. crypto landscape.

However, Circle has since moved to quash these claims, reaffirming its current focus on becoming a publicly listed company. While its IPO ambitions date back to 2022, progress has been slow. In January 2024, Circle renewed its efforts, securing underwriters to back the offering. Still, no official IPO date has been set, leaving investors and the broader crypto community in wait-and-see mode.

The public rebuttal also casts fresh light on Circle’s existing business relationships, particularly its joint venture with Coinbase, known as the Centre Consortium. While the partnership has been critical to USDC’s growth, questions linger about how much autonomy Circle truly maintains, especially in light of recent merger rumors.

For now, Circle remains publicly committed to its IPO roadmap, while strongly denying that any acquisition talks are on the table. As the market continues to evolve, Circle’s next move will be closely watched across the crypto ecosystem. $USDC

Will Circle’s IPO reshape the stablecoin war or is a surprise acquisition still in play? 🤔
Are stablecoins still safe bets in 2025? Let’s talk.👇 $XRP

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