Investor Brady Nessler has filed a class-action lawsuit against Coinbase in Pennsylvania federal court, alleging damages arising from the company’s data breach disclosure on May 22, 2025.
The lawsuit matters as it directly links investor financial damages to Coinbase’s stock decline following the breach. The event highlights potential cybersecurity vulnerabilities within major cryptocurrency platforms.
Coinbase Admits $20 Million Extortion Due to Inside Breach
On May 15, 2025, Coinbase confirmed a data breach involving bribed customer support agents and a $20 million extortion attempt. Hackers accessed internal systems, obtaining limited user account data.
The lawsuit filed by Brady Nessler targets Coinbase alongside two executives. It claims inadequate data protection and delayed breach disclosure resulted in investor losses.
Coinbase Stock Drops 7.2% Following Breach Announcement
The data breach announcement led to a 7.2% drop in Coinbase’s stock price. Despite an initial recovery, further declines occurred amid investor concerns over potential financial repercussions.
Plaintiffs cite possible liabilities up to $400 million and a separate $4.5 million fine from the UK’s Financial Conduct Authority. These factors have weighed on Coinbase’s stock performance.
Growing Lawsuits Demand Crypto Platforms’ Cyber Accountability
Similar lawsuits in the past have targeted major crypto platforms over data breaches. Coinbase’s incident adds to a growing list of cases demanding corporate accountability for cybersecurity lapses.
Experts from Kanalcoin suggest potential tightening of regulations and increased scrutiny on cryptocurrency platforms. “The breach indicates a serious failure in Coinbase’s duty to protect its users and their data,” said Brady Nessler, investor and plaintiff in the lawsuit.
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