On May 26, a class-action lawsuit was filed by investor Brady Nessler against the cryptocurrency exchange Coinbase and its executives, related to data breaches and non-disclosure of regulatory violations in the UK. The lawsuit indicates that the data breach in May caused the stock price to drop by 7.2% in one day, and the $4.5 million fine for violating the agreement with the UK FCA in July 2024 also caused stock price fluctuations. Coinbase previously disclosed that an insider was bribed to leak user data, potentially causing $400 million in damages. This is the first lawsuit against Coinbase due to stock price decline, including stock buyers from April 2021 to May 2025.
The lawsuit accuses Coinbase of not timely disclosing regulatory violations and inflating stock prices. At this point, Coinbase has not commented on the lawsuit. Previously, the exchange has faced multiple lawsuits related to data breaches, including allegations of improper handling of users' biometric data. These violations raise concerns about the platform's transparency and security, while threatening the trust of investors and cryptocurrency users.
