{"id":129984,"date":"2025-05-26T03:19:46","date_gmt":"2025-05-26T03:19:46","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=129984"},"modified":"2025-05-26T03:19:46","modified_gmt":"2025-05-26T03:19:46","slug":"coinbase-faces-another-data-breach-lawsuit-claiming-stock-drop-damages","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=129984","title":{"rendered":"Coinbase faces another data breach lawsuit claiming stock drop damages"},"content":{"rendered":"

Source: Cointelegraph.com NewsCoinbase and two executives have been hit with another proposed class-action lawsuit over the crypto exchange\u2019s stock price drop after disclosing a user data breach earlier this month and for allegedly failing to disclose a violation of an agreement with a UK regulator.
\nCoinbase investor Brady Nessler said in a May 22 lawsuit filed in a Pennsylvania federal court that the data breach and the alleged broken agreement with the UK\u2019s Financial Conduct Authority resulted in a \u201cprecipitous decline in the market value of the Company\u2019s common shares,\u201d causing stockholders to suffer \u201csignificant losses and damages.\u201d
\nCoinbase said on May 15 that its damages bill could run up to $400 million after it was hit with a $20 million extortion attempt four days earlier, with several of its customer support agents bribed to access internal systems and steal a limited amount of user account data.
\nNessler claimed Coinbase (COIN) shares dropped by 7.2% to close at $244 on May 15 as a result of the disclosure. However, the stock did stage a comeback, spiking 9% and hitting $266 by the closing bell on May 16, according to Google Finance.\u00a0
\nCoinbase stock closed down over 3% on May 23 at $263, falling another $1.62 after the bell. COIN is up nearly 6% so far this year.
\nCoinbase is down from the May 23 trading session. Source: Google FinanceNessler\u2019s complaint is seemingly the first to argue damages caused by Coinbase\u2019s stock drop following its breach disclosure in a series of recent class-action lawsuits over the incident.
\nThe crypto exchange was hit with at least six lawsuits in the days after disclosing the data breach, all accusing it of mishandling the incident and failing to protect their data.\u00a0
\nUK agreement breach hurt stock, suit says
\nThe FCA fined Coinbase\u2019s UK arm $4.5 million in July 2024 for breaching a 2020 voluntary agreement preventing the exchange from onboarding customers considered high risk by the regulator.
\nThe FCA said Coinbase onboarded 13,416 customers that the regulator considered high-risk and offered them crypto services.
\nRelated: Coinbase presses to axe rule banning SEC staff from holding crypto
\nNessler said in the suit that the fine saw Coinbase\u2019s stock fall by over 5%, closing at $231.52 on July 25, 2024.
\nNessler also claimed that Coinbase didn\u2019t disclose it had breached this agreement when the exchange first listed its shares on the Nasdaq in April 2021, and as a result, \u201cthe market price of the Company\u2019s securities had been artificially,\u201d inflated.\u00a0
\nNessler claims had she known about the agreement violation, she would not have purchased the stock at the \u201cartificially inflated prices.\u201dCoinbase did not immediately respond to a request for comment.
\nThe class suit was filed on behalf of anyone who bought Coinbase stock between April 14, 2021, and May 14, 2025, and is asking for damages and a jury trial. Coinbase CEO Brian Armstrong and chief financial officer Alesia Haas are also named as defendants.
\nAnother lawsuit filed in Illinois on May 13, alleges Coinbase failed to notify users in writing of the collection, storage, or sharing of their biometric data and the purpose and retention schedule for their data.
\nMagazine: Bitcoin bears eye $69K, CZ denies WLF \u2018fixer\u2019 rumors: Hodler\u2019s Digest, May 18 \u2013 24Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsCoinbase and two executives have been hit with another proposed class-action lawsuit over the crypto exchange\u2019s stock price drop after disclosing a user data breach earlier this month… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129984"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=129984"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129984\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=129984"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=129984"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=129984"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}