Coinbase has been hit with another class-action lawsuit, this time stemming from a security breach that allegedly exposed sensitive user information and contributed to a drop in the company’s stock price.
Filed in the Northern District of California, the lawsuit accuses the crypto exchange of failing to adequately protect user data, which reportedly led to unauthorized access to personal details, including names, home addresses, and even government identification. The breach is said to have affected tens of thousands of customers, triggering concerns over identity theft and further misuse of compromised data.
The complaint also ties the security incident to a sharp decline in Coinbase’s share price, arguing that the company failed to disclose material information to investors in a timely manner. Plaintiffs allege that Coinbase misled stakeholders about the strength of its security protocols, resulting in financial losses when the truth surfaced.
According to court documents, the plaintiffs are seeking damages and restitution for the alleged negligence, breach of fiduciary duty, and violations of federal securities laws. The legal filing references prior regulatory scrutiny and claims that the breach, coupled with Coinbase’s response, reflects a pattern of inadequate risk management.
This lawsuit adds to Coinbase’s growing list of legal and regulatory challenges, as the company continues to navigate a complex landscape involving cybersecurity expectations, investor confidence, and mounting competition in the crypto sector.
The exchange has yet to release a formal statement in response to the lawsuit.
