Coinbase’s Cryptic Conundrum 🤑

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As I sat in my dimly lit Moscow apartment, sipping on a cup of bitter coffee, I couldn’t help but chuckle at the misfortunes of Coinbase. The crypto exchange, once a darling of the digital world, now finds itself in a bit of a pickle. A proposed class-action lawsuit, filed by the intrepid Brady Nessler, claims that Coinbase’s recent data breach and a regulatory violation with the UK’s Financial Conduct Authority (FCA) sent its stock price into a tailspin, leaving investors like Nessler feeling rather…well, let’s just say, ‘financially harmed’ 🤑.

Coinbase faces another class-action lawsuit over its data breach, with investors claiming damages from the stock price drop following the disclosure. 🚨

— BULLSTREET GROUP (@Bullstreetgroup) May 26, 2025

The Breach: A Tale of Extortion and Woe

It all began when Coinbase was targeted by those nefarious cybercriminals in a $20 million extortion attempt. The attackers, with their cunning ways, bribed overseas customer service agents to gain access to internal systems and pilfer sensitive user data, including names, addresses, and IDs. Coinbase, in its infinite wisdom, decided to keep this little incident under wraps until May 15, 2025. And, as one might expect, the late disclosure led to a 7.2% drop in Coinbase (COIN) shares, closing at $244 on the same day. Ah, but the stock rebounded, didn’t it? 🤔

Although the company claimed that less than 1% of its monthly active users were affected, one can’t help but wonder if this was just a clever ruse to avoid a full-blown panic. After all, as the great Russian proverb goes, “A fish rots from the head down.” 🐟

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The UK Regulator Violation: A Case of ‘Oops, We Did It Again’

But wait, there’s more! The lawsuit also highlights a $4.5 million fine from the FCA in July 2024. It seems Coinbase had a bit of a mishap with a 2020 agreement, onboarding over 13,000 high-risk users. Nessler claims Coinbase failed to disclose this violation when it went public in 2021, artificially inflating its share price. Ah, the classic ‘oops, we did it again’ move 🙄.

Coinbase in Legal Scoops: A Never-Ending Saga

The class-action suit seeks damages for anyone who bought Coinbase stock between April 14, 2021, and May 14, 2025. CEO Brian Armstrong and CFO Alesia Haas are also named as defendants. And, if that’s not enough, Coinbase faces at least six other lawsuits tied to the breach, including one filed in Illinois accusing the company of mishandling users’ biometric data without proper notification. It’s a regular crypto soap opera, folks! 📺

Coinbase, in its infinite wisdom, has chosen not to respond publicly to the latest lawsuit. Ah, the classic ‘silence is golden‘ approach 🤐.

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FAQs

What FCA violation is Coinbase accused of?

Coinbase allegedly onboarded 13,000 high-risk users, violating a 2020 UK agreement and resulting in a $4.5M fine in 2024.

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2025-05-26 10:41