Coinbase was collectively sued by shareholders for delays in disclosure of data breaches and regulatory defaults in the UK, as well as a plunging share price. The class action is seeking damages on behalf of investors who purchased Coinbase stock between April 14, 2021 and May 14, 2025. (Synopsis: 69,000 Coinbase user data leaked" official: maximum compensation of $400 million, refusal to pay hacker ransom) (Background supplement: Coinbase's "personal leakage and false number of users" was investigated by the SEC, and its stock price plummeted 7% in a single day) Coinbase, the largest cryptocurrency exchange in the United States, is once again caught in a legal storm. Recently, the company was collectively sued by shareholders due to the December 2024 data leak that was only revealed in the middle of this month, and the stock price fell 7.2% on the day the news was released. The plaintiffs allege that Coinbase delayed the disclosure of key risk information, causing investors to suffer losses from falling stock prices. Coinbase accused of failing to disclose information in real time According to a complaint filed May 23 in the U.S. District Court for the Eastern District of Pennsylvania, investor Brady Nessler, who claims to file on behalf of shareholders, pointed out that Coinbase has a long history of "material omissions" in information disclosure. The most serious of these was the data breach that was only disclosed on May 15, and the actual time was as early as the end of 2024. In this data breach, Coinbase's overseas employees were bribed to leak customer information to hackers. Coinbase estimates that the incident will result in compensation and remediation costs of up to $180 million to $400 million. Extended reading: Coinbase's "personal leakage and false number of users" were investigated by the SEC, and its stock price plunged 7% in a single day The complaint also alleges that Coinbase failed to properly disclose that its UK subsidiary, CB Payments, breached an agreement signed with the UK's Financial Conduct Authority (FCA) in 2020. While the breach may involve corporate governance and compliance risks, Coinbase has been slow to disclose it to investors. The plaintiffs' argument suggests that investors may not have chosen to own the company's shares if they had known the underlying risks. CEO and CFO are both defendants After the personal leak on May 15, Coinbase (COIN) shares fell 7.2% in a single day to close at $244; However, it has recovered to $263.16 as of May 23. Despite the stock price rebound, investors argued that the market reaction during that period confirmed that the "delayed disclosure" caused immediate financial damage to shareholders. The lawsuit states: The defendant's series of misconduct and information disclosure negligence, coupled with a significant decline in the company's stock price, caused the plaintiff and other class action members to suffer significant losses. The lawsuit also names Coinbase CEO Brian Armstrong and CFO Alesia Haas as co-defendants and seeks to recover damages on behalf of investors who purchased Coinbase stock between April 14, 2021 and May 14, 2025. Related Stories Coinbase Strategy Director: Institutional interest has not stopped, DeFi and stablecoins must explode Coinbase Venture: The rise of on-chain AI, the full track layout and business model at a glance Hong Kong Tiger Securities opens bitcoin, stores value with Ethereum, and meets the conditions to send Coinbase shares "Investors lose money and angrily sue Coinbase: delay in disclosing key information, resulting in shareholder losses" This article was first published in BlockTempo's The most influential blockchain news media.
View Original
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
Investors sue Coinbase for losses due to latency in disclosing key information.
Coinbase was collectively sued by shareholders for delays in disclosure of data breaches and regulatory defaults in the UK, as well as a plunging share price. The class action is seeking damages on behalf of investors who purchased Coinbase stock between April 14, 2021 and May 14, 2025. (Synopsis: 69,000 Coinbase user data leaked" official: maximum compensation of $400 million, refusal to pay hacker ransom) (Background supplement: Coinbase's "personal leakage and false number of users" was investigated by the SEC, and its stock price plummeted 7% in a single day) Coinbase, the largest cryptocurrency exchange in the United States, is once again caught in a legal storm. Recently, the company was collectively sued by shareholders due to the December 2024 data leak that was only revealed in the middle of this month, and the stock price fell 7.2% on the day the news was released. The plaintiffs allege that Coinbase delayed the disclosure of key risk information, causing investors to suffer losses from falling stock prices. Coinbase accused of failing to disclose information in real time According to a complaint filed May 23 in the U.S. District Court for the Eastern District of Pennsylvania, investor Brady Nessler, who claims to file on behalf of shareholders, pointed out that Coinbase has a long history of "material omissions" in information disclosure. The most serious of these was the data breach that was only disclosed on May 15, and the actual time was as early as the end of 2024. In this data breach, Coinbase's overseas employees were bribed to leak customer information to hackers. Coinbase estimates that the incident will result in compensation and remediation costs of up to $180 million to $400 million. Extended reading: Coinbase's "personal leakage and false number of users" were investigated by the SEC, and its stock price plunged 7% in a single day The complaint also alleges that Coinbase failed to properly disclose that its UK subsidiary, CB Payments, breached an agreement signed with the UK's Financial Conduct Authority (FCA) in 2020. While the breach may involve corporate governance and compliance risks, Coinbase has been slow to disclose it to investors. The plaintiffs' argument suggests that investors may not have chosen to own the company's shares if they had known the underlying risks. CEO and CFO are both defendants After the personal leak on May 15, Coinbase (COIN) shares fell 7.2% in a single day to close at $244; However, it has recovered to $263.16 as of May 23. Despite the stock price rebound, investors argued that the market reaction during that period confirmed that the "delayed disclosure" caused immediate financial damage to shareholders. The lawsuit states: The defendant's series of misconduct and information disclosure negligence, coupled with a significant decline in the company's stock price, caused the plaintiff and other class action members to suffer significant losses. The lawsuit also names Coinbase CEO Brian Armstrong and CFO Alesia Haas as co-defendants and seeks to recover damages on behalf of investors who purchased Coinbase stock between April 14, 2021 and May 14, 2025. Related Stories Coinbase Strategy Director: Institutional interest has not stopped, DeFi and stablecoins must explode Coinbase Venture: The rise of on-chain AI, the full track layout and business model at a glance Hong Kong Tiger Securities opens bitcoin, stores value with Ethereum, and meets the conditions to send Coinbase shares "Investors lose money and angrily sue Coinbase: delay in disclosing key information, resulting in shareholder losses" This article was first published in BlockTempo's The most influential blockchain news media.