{"id":28696,"date":"2025-05-26T23:31:45","date_gmt":"2025-05-26T23:31:45","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=28696"},"modified":"2025-05-26T23:31:45","modified_gmt":"2025-05-26T23:31:45","slug":"coinbase-faces-new-lawsuit-over-stock-drop-damages-following-data-breach","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=28696","title":{"rendered":"Coinbase Faces New Lawsuit Over Stock Drop Damages Following Data Breach"},"content":{"rendered":"
\n

Coinbase is facing a new class action lawsuit claiming that investors suffered significant losses over the years due to the crypto exchange\u2019s \u201comissions,\u201d which have affected the company\u2019s stock price.<\/p>\n

Coinbase Accused Of Key \u2018Omissions\u2019<\/h2>\n

Last week, a Coinbase investor filed<\/a> a class action lawsuit in the US District Court for the Eastern District of Pennsylvania against Coinbase, CEO Brian Armstrong, and CFO Alesia Hass, alleging that the company\u2019s shareholders have suffered \u201csignificant losses and damages\u201d over the past four years.<\/p>\n

In the May 22 complaint, investor Brady Nessler, on behalf of persons or entities who purchased or otherwise acquired publicly traded Coinbase securities between April 14, 2021, and May 14, 2025, claims that the exchange has a long list of \u201cwrongful acts and omissions\u201d that have led to the \u201cprecipitous decline in the market value of the Company\u2019s common shares\u201d affecting the Plaintiff and other Class members.<\/p>\n

\"coinbase\"<\/p>\n

Among the omissions, the lawsuit lists the company\u2019s recent<\/a> data breach and its failure to disclose that it breached its 2020 agreement with the UK\u2019s Financial Conduct Authority (FCA).<\/p>\n

In October 2020, the company\u2019s UK subsidiary, Coinbase Payments (CBPL), signed a voluntary agreement to prevent onboarding clients considered \u201chigh risk\u201d by the regulator and reduce potential criminal activity on the CBPL platform.<\/p>\n

The lawsuit alleges that the company made several \u201cmaterially false and misleading\u201d statements at the time that omitted that Coinbase Payments, Ltd. (CBPL) had been found guilty by the UK regulator of having \u201cinadequate anti-money laundering focused systems to prevent high-risk individuals from using its platform, and that CBPL then breached the Agreement designed to address those deficiencies, creating legal exposure.\u201d<\/p>\n

Notably, the price of the company\u2019s common stock reportedly fell by $13.52 per share, a 5.52% decline, when a Reuters article titled \u201cCoinbase UK unit fined for breaching financial crime requirements\u201d was published during market hours on July 25, 2024. The FCA fined<\/a> Coinbase\u2019s UK subsidiary a $4.5 million penalty for breaching the voluntary agreement.<\/p>\n

Data Breach Leads To Class Action Lawsuits<\/h2>\n

Moreover, the Class action suit argues that the recent data breaches also resulted in significant losses and damages for stockholders, highlighting the May 15 statement from the crypto exchange.<\/p>\n

As reported<\/a> by Bitcoinist, Brian Armstrong shared that threat actors bribed a handful of customer support contractors to access Coinbase\u2019s internal tools, resulting in the breach of names, email addresses, limited transaction records, and partial Social Security numbers of 1% of the exchange\u2019s users.<\/p>\n

The hackers attempted to blackmail the exchange, demanding $20 million in Bitcoin (BTC) to return the sensitive customer data. However, Armstrong revealed they refused to pay the ransom.<\/p>\n

The lawsuit states that, following the news, the price of Coinbase\u2019s common stock fell<\/a> by $19.85 per share, a 7.2% decline, to close at $244 on May 15, 2025. Since then, multiple lawsuits have been filed against the crypto exchange, and a US Department of Justice Investigation has been opened.<\/p>\n

Based on this, Plaintiff seeks to \u201crecover compensable damages caused by Defendants\u2019 violations of the federal securities laws under the Securities Exchange Act of 1934 (the \u2018Exchange Act\u2019).\u201d<\/p>\n

\"Coinbase,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Coinbase is facing a new class action lawsuit claiming that investors suffered significant losses over the years due to the crypto exchange\u2019s \u201comissions,\u201d which have affected the company\u2019s stock price. Coinbase Accused Of Key \u2018Omissions\u2019 Last week, a Coinbase investor filed a class action lawsuit in the US District Court for the Eastern District of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-28696","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/28696","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=28696"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/28696\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=28696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=28696"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=28696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}