Key Takeaways
- Coinbase faces a class-action suit over stock losses after disclosing a data breach.
- The UK FCA fined Coinbase $4.5 million for violating a 2020 agreement.
- The lawsuit covers investors who bought Coinbase stock from April 2021 to May 2025.
Coinbase has been hit with another proposed class-action lawsuit—this time by investors alleging financial losses tied to a drop in the company’s stock price following the disclosure of a data breach and regulatory violation.
Details of the lawsuit
Filed on May 22 in a Pennsylvania federal court by investor Brady Nessler, the complaint targets Coinbase, CEO Brian Armstrong, and CFO Alesia Haas.
Nessler claims the company failed to disclose a breach of a 2020 agreement with the UK Financial Conduct Authority (FCA), alongside a separate user data breach earlier this month.
Data breach & financial impact
The data breach, revealed by Coinbase on May 15, involved an alleged $20 million extortion attempt.
Several customer support agents were bribed to access internal systems, leading to the theft of limited user data. Coinbase warned damages could total up to $400 million.
Following this, Coinbase (COIN) shares dropped 7.2% to $244 on May 15 before recovering 9% to $266 the next day.
FCA fine & stock price reaction
The complaint also cites the FCA’s $4.5 million fine issued in July 2024.
The UK regulator found Coinbase had violated its voluntary agreement by onboarding over 13,000 high-risk customers.
This news led COIN to fall over 5% to $231.52 on July 25, 2024.
Claims of artificial inflation
Nessler claims the company’s stock was “artificially inflated” due to the lack of disclosure and seeks damages for anyone who bought shares between April 14, 2021, and May 14, 2025.
Coinbase’s response
Coinbase has not yet responded to the suit.
