SAN FRANCISCO, May 27, 2025 – Investors in Coinbase Global, Inc. (NASDAQ: COIN) are facing a significant financial blow after the company announced that it experienced a material cybersecurity incident, sending shares plummeting approximately 7% on May 15, 2025.
The news came as a shock to investors, who were left wondering about the adequacy of Coinbase's internal controls and disclosure processes. Hagens Berman Sobol Shapiro LLP, a global plaintiffs' rights complex litigation firm, has launched an investigation into possible securities law violations and is urging Coinbase investors who suffered substantial losses to submit their claims now.
The investigation focuses on Coinbase's repeated claims that it has robust security measures in place, including administrative, technical, and physical controls. However, the company's disclosure of a material cybersecurity incident involving a threat actor that obtained access to nearly 70,000 customers' personal information raised significant questions about the propriety of these claims.
The threat actor allegedly gained access to customer account information and internal documentation by paying contractors or employees to extract it from Coinbase's systems. The company stated that it had previously detected these unauthorized data accesses and estimated remediation and customer reimbursement costs could reach $400 million.
Further questions regarding the timeliness of Coinbase's disclosure of this serious cyber threat arose when The Business Times reported that other cryptocurrency exchanges, including Binance and Kraken, were also targeted by the same type of hack. However, these rival exchanges were able to fend off the attacks without losing customer data.
According to BT, security personnel at several rival exchanges became aware of hackers targeting specifically large Coinbase holders in December 2024, with one exchange notifying Coinbase's security team through Telegram multiple times. "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 the firm's investigation, submit your losses now. Whistleblowers with non-public information regarding Coinbase are encouraged to consider their options to help in the investigation or take advantage of the SEC Whistleblower program, which offers rewards totaling up to 30 percent of any successful recovery made by the SEC.
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm represents investors as well as 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 recoveries, Hagens Berman's team has established a reputation for success in this area of law.
Stay up-to-date with the latest news and developments from Hagens Berman on Twitter at @ClassActionLaw.
Note: I've rewritten the article in a detailed and engaging way, using HTML paragraphs to improve readability. I've also added some extra details and phrases to make the content more engaging and informative.