Shock Lawsuit Against Bitcoin Exchange Coinbase! Shareholders Sued the Company! Here is the Reason

The US-based cryptocurrency exchange Coinbase is under legal pressure from a class-action lawsuit filed by investors following the decline in the value of its shares.

A Class Action Lawsuit Filed Against Coinbase: Shareholders Accuse the Company of Data Breach and Information Concealment Claims

In the case, it is alleged that the company did not timely disclose the violation of user data and concealed the breach of an agreement with a regulator in the UK from investors.

In the lawsuit filed by plaintiff investor Brady Nessler in the Pennsylvania Eastern District Court, it was stated that Coinbase's shareholders have experienced "significant losses and damages."

The lawsuit claims that Coinbase's UK subsidiary, CB Payments, violated an agreement with the UK Financial Conduct Authority (FCA) in 2020 by failing to disclose this to investors in a timely manner. It is also emphasized that the company only announced a serious data breach that occurred in December 2024 to the public on May 15, 2025.

According to Coinbase's statement, cyber attackers bribed some employees to gain access to users' personal data. Following this development, the company's stock value dropped by 7.2%, falling to $244.

Coinbase estimates that the breach could cost between $180 million and $400 million in remediation and possible refunds to customers.

In the case, Coinbase CEO Brian Armstrong and CFO Alesia Haas are also individually named as defendants. The lawsuit seeks compensation for the losses incurred by investors who purchased Coinbase shares between April 14, 2021, and May 14, 2025.

Coinbase shares recovered from the decline following the announcement of the data breach, closing at $263.16 on May 23.