Coinbase is facing a new class action lawsuit filed by investor Brady Nessler. The case, lodged in the U.S. District Court for the Eastern District of Pennsylvania, claims the crypto exchange hid key details about a major data breach and regulatory penalties in the UK.
The lawsuit names Coinbase CEO Brian Armstrong and CFO Alesia Haas among others. It accuses them of not disclosing a data leak tied to insider misconduct and an FCA fine, which allegedly caused the company’s stock to drop.
According to court documents, the data breach involved a $20 million extortion attempt. Hackers stole personal user data by bribing third-party customer support agents. Coinbase admitted the breach affected less than 1% of users, but the news wasn’t shared until May 15, 2025. That day, Coinbase shares fell 7.2%, closing at $244.
The complaint also cites a UK Financial Conduct Authority fine. On July 25, 2024, the UK subsidiary of Coinbase, CB Payments Ltd., was fined £3.5 million ($4.5 million). It was for violating a 2020 consent order that barred the signing up of high-risk customers. Despite this, 13,416 high-risk accounts were allowed, processing $226 million in crypto transactions.
Nessler is asking for class action status, financial damages, legal costs, and a jury trial. Coinbase has not released a statement on the case.
While COIN shares briefly bounced back, they dropped again on May 23, closing at $263.1, down 3.23% for the day.
