Coinbase Faces Class-Action Lawsuit Over Data Breach and Regulatory Missteps

Coinbase, a leading cryptocurrency exchange, is under legal fire as shareholder Brady Nessler files a proposed class-action lawsuit. The lawsuit alleges that the company’s delayed disclosure of a data breach and regulatory violations with the UK’s Financial Conduct Authority (FCA) led to significant stock depreciation, harming investors. The breach, which occurred months before its public revelation on May 15, 2025, involved cybercriminals attempting extortion. This legal scrutiny highlights the growing challenges faced by crypto exchanges in maintaining regulatory compliance and safeguarding user data.

Coinbase Hit with Class-Action Lawsuit Over Data Breach and FCA Violation

Coinbase faces renewed legal scrutiny as shareholder Brady Nessler files a proposed class-action lawsuit. The complaint alleges the exchange’s delayed disclosure of a data breach and regulatory missteps with the UK’s Financial Conduct Authority caused significant stock depreciation, harming investors.

The breach, occurring months prior to its May 15, 2025 revelation, involved extortion attempts by cybercriminals. Nessler contends Coinbase withheld material information that would have affected market valuation—a claim that sent shockwaves through the crypto investment community.