COIN Shares Slide Amid Disclosure of Material Cybersecurity Incident
SAN FRANCISCO, May 23, 2025 (GLOBE NEWSWIRE) -- Investors in Coinbase Global, Inc. (NASDAQ: COIN) saw their shares plummet by as much as 7% on May 15, 2025, after the company disclosed a material cybersecurity incident that raised serious questions about its internal controls and disclosure processes.
Hagens Berman, a global plaintiffs' rights complex litigation firm, has opened an investigation into possible securities law violations related to Coinbase's handling of the cybersecurity incident. The firm is urging investors who suffered substantial losses to submit their claims now and encouraging individuals with knowledge or information that may assist in the investigation to come forward.
The investigation focuses on the propriety of Coinbase's repeated claims about its security measures, including administrative, technical, and physical security controls, as well as its robust information security program and cybersecurity risk management processes. These claims came under scrutiny after Coinbase disclosed a material cybersecurity incident involving a threat actor that obtained access to nearly 70,000 customers' personal information.
The company reported receiving an email from an unknown threat actor claiming to possess customer account information and internal documentation. The actor allegedly obtained this data by paying contractors or employees to extract it from Coinbase's systems. According to the firm, remediation and customer reimbursement costs could reach $400 million.
Further questions about Coinbase's handling of the incident arose when The Business Times reported that rival exchanges Binance and Kraken had also been targeted by the same type of hack disclosed by Coinbase, but were able to fend off the attacks without losing customer data. The report revealed that security personnel at several rival exchanges became aware of hackers targeting specifically large Coinbase holders in December last year.
"We're investigating whether Coinbase may have misrepresented its security controls and delayed disclosing this serious cybersecurity incident," said Reed Kathrein, the Hagens Berman partner leading the investigation. "If you invested in Coinbase and have substantial losses, or have knowledge that may assist our firm's investigation, we urge you to submit your losses now."
Whistleblowers with non-public information regarding Coinbase are also encouraged to come forward and consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under this new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.
For more information and answers to frequently asked questions about the Coinbase investigation, please visit our website. You can also contact Reed Kathrein at 844-916-0895 or email COIN@hbsslaw.com for more information.
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm represents investors, whistleblowers, workers, consumers, and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. With over $2.9 billion in secured settlements, Hagens Berman's team has made significant strides in holding corporations accountable for their actions.
Follow the firm for updates and news at @ClassActionLaw. For more information about our services and successes, please visit hbsslaw.com.