Coinbase’s Data Breach Drama: Investors Left Crying Over Spilled Crypto! 💔💸

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Oh, look! Coinbase and its two top execs are back in the hot seat, and this time it’s not just for their questionable fashion choices. They’re facing yet another proposed class-action lawsuit because, surprise surprise, their stock price took a nosedive after they decided to spill the beans about a user data breach. Who knew honesty could be so expensive? 🙄

Brady Nessler, a Coinbase investor (and probably a bit of a masochist), filed a lawsuit on May 22 in a Pennsylvania federal court. He claims that the data breach and a little oopsie with the UK’s Financial Conduct Authority (FCA) led to a “precipitous decline” in the market value of Coinbase’s shares. Translation: investors are feeling the burn and it’s not from the sun! 🔥

Coinbase, in a dramatic twist worthy of a soap opera, announced on May 15 that their damages could skyrocket to $400 million after a $20 million extortion attempt. Apparently, some of their customer support agents were bribed to play peek-a-boo with internal systems and snatch a smidgen of user account data. Because who doesn’t love a little corporate espionage? 🤷‍♀️

Nessler claims that on May 15, Coinbase (COIN) shares plummeted by 7.2% to a mere $244. But wait! The stock had a mini comeback, spiking 9% to $266 by the end of the next day. Talk about a rollercoaster ride! 🎢

Fast forward to May 23, and the stock closed down over 3% at $263, dropping another $1.62 after hours. But hey, at least COIN is up nearly 6% this year! Silver linings, right? 🌈

Nessler’s complaint is apparently the first to claim damages from Coinbase’s stock drop post-breach disclosure, joining a lovely parade of at least six other lawsuits that accuse the crypto exchange of mishandling the whole debacle. Because nothing says “trust us with your money” like a data breach! 🙃

UK Agreement Breach: The Plot Thickens!

In a plot twist that could rival any thriller, the FCA slapped Coinbase’s UK arm with a $4.5 million fine in July 2024 for breaching a 2020 agreement that prevented them from onboarding high-risk customers. Spoiler alert: they onboarded 13,416 of them anyway. Oops! 😬

Nessler claims this little fine caused Coinbase’s stock to drop over 5%, closing at $231.52 on July 25, 2024. And get this: he alleges that Coinbase didn’t even mention this breach when they first listed their shares on Nasdaq in April 2021. So, the market price was “artificially” inflated. Who knew stocks could be so dramatic? 🎭

Nessler insists that had he known about the agreement violation, he would have skipped buying the stock at those “artificially inflated prices.” But alas, hindsight is 20/20! 👀

Coinbase has yet to respond to requests for comment, probably too busy trying to figure out how to fix this mess. The class suit is on behalf of anyone who bought Coinbase stock between April 14, 2021, and May 14, 2025, and they’re asking for damages and a jury trial. Because why not add a little courtroom drama to the mix? ⚖️

And just when you thought it couldn’t get worse, another lawsuit filed in Illinois on May 13 claims Coinbase failed to notify users about the collection, storage, or sharing of their biometric data. Because who doesn’t love a little mystery with their crypto? 🕵️‍♀️

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2025-05-26 05:58