Coinbase is under new legal fire, this time investors. The shareholder Brady Nessler filed a projection of collective appeal on May 22, claiming that the recent violations of data from Crypto Exchange and a regulatory violation with the Financial Conduct Authority (FCA) of the United Kingdom have sparked a sharp drop in actions, causing financial harm to shareholders. Nessler claims that Coinbase has retained vital information that would have had an impact on the value of the company’s shares.
Scandal of violation and extortion
The data violation occurred months earlier, but was only revealed on May 15, 2025, after Coinbase was targeted by cybercriminals in an extortion attempt of $ 20 million. The attackers united customer service agents abroad to access internal systems and steal sensitive user data, including names, addresses and identifiers. Although the company said that less than 1% of its monthly active users were affected, late disclosure resulted in a 7.2% drop in Coinbase shares (corner), closing at $ 244 on the same day. While the action rebounded at $ 266 the next day, it was later plunged, ending at $ 263 on May 23. Despite these fluctuations, Coin remains nearly 6% in 2025.
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British regulator violation adds to the fallout
In addition, the trial also highlights a fine of $ 4.5 million from the FCA in July 2024. The British regulator found that Coinbase had violated a 2020 agreement by integrating more than 13,000 high -risk users. Nessler says that Coinbase did not disclose this violation when it became public in 2021, artificially inflating its stock market course.
Coinbase in legal scoops
The collective appeal requests damage to all those who bought a stock of Coinbase between April 14, 2021 and May 14, 2025. CEO Brian Armstrong and the financial director Alesia Haas are also appointed defendants. In addition, Coinbase faces at least six other proceedings linked to violation, including a deposited in Illinois, accusing the company of managing the biometric data of users without appropriate notification.
Coinbase did not respond publicly to the last trial.
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Faq
Coinbase would have embarked 13,000 high-risk users, violating an agreement in the United Kingdom 2020 and resulting in a fine of $ 4.5 million in 2024.
Coinbase faces at least six proceedings on violation, including allegations of non-use and neglect of biometric data.
The hackers stole user data via welding agents and tried to extort $ 20 million, affecting less than 1% of users, revealed on May 15, 2025.
