Coinbase Faces Lawsuit over Stock Drop Following Data Breach and FCA Penalty

Coinbase and two executives are facing a proposed class-action lawsuit filed by investor Brady Nessler on May 22 in a Pennsylvania federal court. The suit claims the company’s share price dropped sharply after disclosing a data breach and a violation of an agreement with the UK’s Financial Conduct Authority (FCA).Data Breach and FCA Fine Spark LawsuitCoinbase revealed on May 15 that it had been targeted in a $20 million extortion attempt. Several customer service agents were allegedly bribed, and limited user data was accessed. The company said the breach could cost up to $400 million. That day, Coinbase shares fell 7.2% to $244, before recovering 9% to $266 on May 16. The stock closed at $263 on May 23, down over 3%, Cointelegraph reported.Nessler also pointed to a $4.5 million fine imposed by the FCA in July 2024. The UK regulator found Coinbase had onboarded over 13,000 high-risk customers, breaching a 2020 voluntary agreement. According to the suit, this caused a 5% drop in Coinbase stock on July 25, 2024.Coinbase faces another class-action lawsuit over its data breach With investors claiming damages from the stock price drop following the disclosure.#coinbase #btc pic.twitter.com/6VVFYZV1u0— Daniyal Nagori (@daniyalnagori1) May 26, 2025You may find it interesting at FinanceMagnates.com: Coinbase Customer Data Leak Incident Faces DoJ Investigations.Coinbase Faces Biometric Data LawsuitNessler claims Coinbase failed to disclose the FCA breach when it went public in April 2021, which allegedly left the stock price artificially inflated. The suit seeks damages for anyone who bought Coinbase shares between April 14, 2021, and May 14, 2025.Coinbase CEO Brian Armstrong and CFO Alesia Haas are also named as defendants. Coinbase has not responded to the lawsuit. A separate lawsuit filed in Illinois on May 13 accuses Coinbase of mishandling biometric data disclosures. This article was written by Tareq Sikder at www.financemagnates.com.

May 26, 2025 - 17:20

Coinbase Faces Lawsuit over Stock Drop Following Data Breach and FCA Penalty

Coinbase and two executives are facing a proposed class-action lawsuit filed by investor Brady Nessler on May 22 in a Pennsylvania federal court. The suit claims the company’s share price dropped sharply after disclosing a data breach and a violation of an agreement with the UK’s Financial Conduct Authority (FCA).

Data Breach and FCA Fine Spark Lawsuit

Coinbase revealed on May 15 that it had been targeted in a $20 million extortion attempt. Several customer service agents were allegedly bribed, and limited user data was accessed. The company said the breach could cost up to $400 million. That day, Coinbase shares fell 7.2% to $244, before recovering 9% to $266 on May 16. The stock closed at $263 on May 23, down over 3%, Cointelegraph reported.

Nessler also pointed to a $4.5 million fine imposed by the FCA in July 2024. The UK regulator found Coinbase had onboarded over 13,000 high-risk customers, breaching a 2020 voluntary agreement. According to the suit, this caused a 5% drop in Coinbase stock on July 25, 2024.

Coinbase faces another class-action lawsuit over its data breach With investors claiming damages from the stock price drop following the disclosure.#coinbase #btc pic.twitter.com/6VVFYZV1u0— Daniyal Nagori (@daniyalnagori1) May 26, 2025

You may find it interesting at FinanceMagnates.com: Coinbase Customer Data Leak Incident Faces DoJ Investigations.

Coinbase Faces Biometric Data Lawsuit

Nessler claims Coinbase failed to disclose the FCA breach when it went public in April 2021, which allegedly left the stock price artificially inflated. The suit seeks damages for anyone who bought Coinbase shares between April 14, 2021, and May 14, 2025.

Coinbase CEO Brian Armstrong and CFO Alesia Haas are also named as defendants. Coinbase has not responded to the lawsuit. A separate lawsuit filed in Illinois on May 13 accuses Coinbase of mishandling biometric data disclosures. This article was written by Tareq Sikder at www.financemagnates.com.