Coinbase was struck by a flood of prosecution after recently revealed that his user data was raped, the users accusing the exchange of crypto to poorly manage the incident.
At least six proceedings were filed against Coinbase between May 15 and 16, which all made allegations that the exchange did not maintain strict security protocols to protect user data and managed the consequences of data violation.
In one of the prosecution, filed before a New York Federal Court on May 16, applicant Paul Bender argued that Coinbase had not protected sensitive personal information from millions of users during data violation.
Coinbase reported on May 15 that four days earlier, he had been hit by an extortion attempt of $ 20 million after cybercriminals welded several of his customer assistance agents to access internal systems and steal a limited amount of user account data.
Stolen data included names, addresses, telephone numbers, emails, the last four figures for social security numbers, certain bank account identifiers, driving licenses, passports and certain account data, such as balances of balance and transactions history.
Bender said that “Coinbase has not implemented and maintained reasonable safety guarantees”, which expose users to “serious and in progress risks”.
The trial also said that Coinbase’s response to the incident was “inadequate, fragmented and delayed”.
“Users were not quickly or fully informed of the compromise, and Coinbase did not immediately take significant measures to mitigate additional damage, provide identity protection services or offer usable advice to affected people,” said the complaint.
The trial said that users may be confronted with a “substantial, immediate and continuous threat to theft of identity and financial fraud” and that the consequences of the violation could be long -term or “potentially permanent” because compromised information cannot be recovered or secure once exposed.
The burst of prosecution makes similar allegations
Two other proceedings filed before a New York Federal Court made similar complaints against Coinbase, while a fourth trial added the allegation of unfair enrichment, arguing that Coinbase did not spend enough for data security measures.
The four complaints require damage and other measures to help protect the applicant’s sensitive data.
Meanwhile, a fifth trial brought by a Federal Tribunal in California on May 15 made similar complaints against Coinbase, but asked the court to order Coinbase to serve all the sensitive data that she holds on the complainants and hire third -party security listeners to test her security systems, among other requests.
A Coinbase spokesperson did not comment on the prosecution and rather pointed to Cointelegraph to a blog article that he shared concerning data violations.
Coinbase said that he had refused to pay the ransom of $ 20 million and reported plans to reimburse users was deceived in the sending of crypto to swindle phishing due to data violation.
In a file with the Securities and Exchange Commission of the United States, the Stock Exchange said it expects reimbursement expenses ranging from $ 180 million to $ 400 million.
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The exchange would also have dismissed a group of customer support officers based in India after their alleged involvement in social engineering attacks against users.
Coinbase (corner) shares fell 7% and dropped to $ 244 after disclosing data violation with a current dry probe on distorted user numbers in 2021.
The title has since staged a return, reversing 9% and reaching $ 266 by the closing bell on May 16, according to Google Finance.
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