Legal Trouble Engulfs Coinbase Over Cyberattack Revelation
The post Legal Trouble Engulfs Coinbase Over Cyberattack Revelation appeared on BitcoinEthereumNews.com. Coinbase, a major cryptocurrency exchange, has come under legal scrutiny due to allegations of delayed notification regarding a cyber incident. Shareholders are outraged after it became known that a significant hack in December 2024, which compromised customer data, was only disclosed on May 15, 2025. As a result, Brady Nessler filed a class-action lawsuit in Pennsylvania, blaming the delay and past “information deficiencies” for considerable financial damages. The suit directly names CEO Brian Armstrong and CFO Alesia Haas, with shareholders demanding restitution for those who held shares from April 14, 2021, to May 14, 2025. Was Timely Disclosure Neglected?Could Compliance Missteps Impact Operations? Was Timely Disclosure Neglected? The plaintiffs accuse Coinbase of hiding a major breach, wherein attackers bribed personnel to access customer information. This non-disclosure allegedly kept Coinbase’s market value higher than it should have been, until the revelation on May 15 triggered a 7.2% drop in its stock price to $244. The company initially predicted the breach could cost between $180 million and $400 million. However, the plaintiffs argued these estimates might be overly optimistic. Could Compliance Missteps Impact Operations? Yes, in addition to the data breach, the lawsuit highlights possible violations by Coinbase’s UK unit, CB Payments. It’s claimed that the company failed to uphold a regulatory agreement with the Financial Conduct Authority (FCA) from 2020. This alleged breach obscured regulatory vulnerabilities from investors, fostering an inaccurate sense of security regarding Coinbase’s growth. These ongoing “deficient declarations” potentially misrepresented the company’s operational and legal exposures. Under the FCA terms, Coinbase was supposed to keep client assets separate and enhance oversight during transfers. Failing compliance could expose the company to both compensation claims and future licensing challenges. The suit warns that rocky relations with global regulators could undermine the exchange’s ability to continue cryptocurrency operations, impacting its revenue…
The post Legal Trouble Engulfs Coinbase Over Cyberattack Revelation appeared on BitcoinEthereumNews.com.
Coinbase, a major cryptocurrency exchange, has come under legal scrutiny due to allegations of delayed notification regarding a cyber incident. Shareholders are outraged after it became known that a significant hack in December 2024, which compromised customer data, was only disclosed on May 15, 2025. As a result, Brady Nessler filed a class-action lawsuit in Pennsylvania, blaming the delay and past “information deficiencies” for considerable financial damages. The suit directly names CEO Brian Armstrong and CFO Alesia Haas, with shareholders demanding restitution for those who held shares from April 14, 2021, to May 14, 2025. Was Timely Disclosure Neglected?Could Compliance Missteps Impact Operations? Was Timely Disclosure Neglected? The plaintiffs accuse Coinbase of hiding a major breach, wherein attackers bribed personnel to access customer information. This non-disclosure allegedly kept Coinbase’s market value higher than it should have been, until the revelation on May 15 triggered a 7.2% drop in its stock price to $244. The company initially predicted the breach could cost between $180 million and $400 million. However, the plaintiffs argued these estimates might be overly optimistic. Could Compliance Missteps Impact Operations? Yes, in addition to the data breach, the lawsuit highlights possible violations by Coinbase’s UK unit, CB Payments. It’s claimed that the company failed to uphold a regulatory agreement with the Financial Conduct Authority (FCA) from 2020. This alleged breach obscured regulatory vulnerabilities from investors, fostering an inaccurate sense of security regarding Coinbase’s growth. These ongoing “deficient declarations” potentially misrepresented the company’s operational and legal exposures. Under the FCA terms, Coinbase was supposed to keep client assets separate and enhance oversight during transfers. Failing compliance could expose the company to both compensation claims and future licensing challenges. The suit warns that rocky relations with global regulators could undermine the exchange’s ability to continue cryptocurrency operations, impacting its revenue…
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