- Coinbase shareholder files lawsuit after data breach and UK fine lead to sharp fall in stock price.
- Hackers stole customer data after bribing Coinbase staff and demanded millions from the company.
- The lawsuit seeks damages for investors who bought Coinbase shares between April 2021 and May 2025.
Coinbase is facing fresh legal pressure following a class action lawsuit filed on May 22 in Pennsylvania. The plaintiff, Brady Nessler, a shareholder, alleges that Coinbase’s recent data breach and a regulatory violation triggered stock losses.
The lawsuit states that Coinbase did not safeguard confidential data and did not follow the agreement it had with the UK’s Financial Conduct Authority. According to the suit, these events caused shareholders huge financial issues.
Breach Details Surface, Stock Reacts Sharply
On May 15, Coinbase disclosed a data breach that impacted at least 69,461 users. Hackers bribed customer service staff to access company systems. They stole personal user data, including full names, addresses, and identity information.
The attackers demanded $20 million. Coinbase refused to pay but instead offered the same amount as a reward to identify them. Following this disclosure, Coinbase’s stock dropped by 7.2%, closing at $244 per share on the same day.
Although the stock rebounded to $266 the next day, it later fell again. By May 23, the price settled at $263. The breach affected under 1% of monthly active users, but the financial and reputational damage was notable.
Previous FCA Violation Adds to Pressure
The lawsuit also cites a fine issued in July last year by the UK’s Financial Conduct Authority. Coinbase’s UK branch was penalized $4.5 million for breaching a 2020 agreement with the FCA.
Under that agreement, Coinbase was not supposed to onboard high-risk customers. However, the company admitted to onboarding over 13,000 such clients, which the FCA classified as a serious breach.
When the fine was announced, Coinbase’s stock fell more than 5%. On July 25, the price dropped to $231.52, impacting shareholders who held the stock during that period.
Broader Legal Fallout Emerges
Nessler’s filing marks the first class action to demand damages linked to the recent breach’s stock impact. The case names Coinbase CEO Brian Armstrong and CFO Alesia Haas as defendants.
So far, Coinbase has not issued a public statement about the lawsuit. This is the latest in a series of legal actions against the firm. At least six other lawsuits have followed the breach, all alleging poor handling of user data.
The class action seeks compensation for shareholders who purchased Coinbase stock between April 14, 2021, and May 14, 2025.
