Coinbase, a major cryptocurrency exchange, is facing a new class-action lawsuit. Investors claim they lost a lot of money because of things Coinbase didn’t tell them, impacting the company’s stock price.
The Accusations
The lawsuit, filed in Pennsylvania, names Coinbase, its CEO Brian Armstrong, and CFO Alesia Hass. Investor Brady Nessler is representing people who bought Coinbase stock between April 2021 and May 2025. Nessler claims Coinbase’s “wrongful acts and omissions” caused a big drop in the stock’s value.
Hidden Problems
The lawsuit points to several issues:
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UK Regulatory Breach: Coinbase’s UK subsidiary, Coinbase Payments (CBPL), allegedly broke an agreement with the UK’s Financial Conduct Authority (FCA) to prevent high-risk users from the platform. The lawsuit says Coinbase didn’t disclose this breach, which led to a fine and a stock price drop when it became public.
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Data Breach: A recent data breach, where hackers bribed customer support staff, also caused a significant drop in Coinbase’s stock price. The breach exposed the personal information of some users, leading to multiple lawsuits and a Department of Justice investigation.
The Fallout
The lawsuit claims that Coinbase made misleading statements, hiding the regulatory issues and the severity of the data breach. The stock price reportedly dropped significantly after news of both incidents broke. The plaintiffs are seeking compensation for their losses.
