# Coinbase Faces Class Action Lawsuit Over COIN Stock Drop Linked to Data and Regulatory Breaches
In a recent development, a US-based investor has filed a class action lawsuit against Coinbase, alleging the cryptocurrency exchange violated securities laws and caused its stock price to plummet due to data breaches and regulatory issues. Brady Nessler, on behalf of individuals and entities who acquired publicly traded Coinbase securities between April 14th, 2021, and May 14th, 2025, is suing the company.
According to the lawsuit, Coinbase made "materially false and misleading" statements regarding its subsidiary CB Payments Limited (CBPL), which led to a significant drop in the exchange's stock price. The UK's Financial Conduct Authority (FCA) had previously imposed a £3.5 million fine ($4.5 million) on CBPL for allegedly onboarding and providing e-money services to 13,416 high-risk customers. This news caused Coinbase's common stock to fall by $13.52 per share, or 5.52%.
The lawsuit also points to the exchange's recent data breach, in which hackers compromised the personal data of approximately 69,461 people. According to Coinbase, criminals bribed a small group of overseas customer support agents to copy the data of less than 1% of the firm's monthly transacting users. However, the company estimates it will pay $180 million to $400 million in remediation costs and voluntary customer reimbursements.
The breach, which was revealed after hackers demanded a $20 million BTC payoff in exchange for not releasing the illegally obtained information, led to Coinbase's stock falling by more than 7% on the day the news broke. However, the company quickly recovered later that week.
Brady Nessler is seeking damages to class members and further relief as deemed appropriate. The lawsuit also names Coinbase chief executive Brian Armstrong and Alesia Haas, the firm's chief financial officer, as defendants.
As investors, it is essential to be aware of these developments and exercise caution when making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Please do your due diligence before investing, and remember that your transfers and trades are at your own risk.
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