An investor is suing Coinbase, accusing the US-based crypto exchange of violating securities laws and causing its stock to drop as a result.
Brady Nessler filed a class action lawsuit in the Eastern District of Pennsylvania on behalf of any individuals and entities who acquired publicly traded Coinbase securities between April 14th, 2021 and May 14th, 2025.
Nessler’s legal team alleges the exchange made materially false and misleading statements regarding its subsidiary CB Payments Limited (CBPL).
Last year, the United Kingdom’s Financial Conduct Authority (FCA) imposed a £3.5 million fine ($4.5 million) on CBPL for allegedly onboarding and providing e-money services to 13,416 high-risk customers. News of the fine caused the price of Coinbase’s common stock to fall by $13.52 per share, or 5.52%, according to the lawsuit.
Nessler’s suit also points to the exchange’s recent data breach. Coinbase says criminals bribed a small group of overseas customer support agents to copy the data of less than 1% of the firm’s monthly transacting users. A recent filing with the Maine Attorney General’s Office indicates the breach impacted 69,461 people.
The exchange notes that hacked information includes names, addresses, phone numbers, email addresses, masked social security numbers (the last 4 digits only), masked bank-account numbers, some bank account identifiers, government-ID images, account data and limited corporate data.
Coinbase learned about the hack after receiving an email earlier this month demanding a $20 million BTC payoff in exchange for not releasing the illegally obtained info. The company refused to give in to the hackers’ demand and estimates it will pay $180 million to $400 million in remediation costs and voluntary customer reimbursements.
Coinbase’s stock fell by more than 7% on the day the news of the breach broke, but it quickly recovered later that week.
Nessler’s suit also names Coinbase chief executive Brian Armstrong and Alesia Haas, the firm’s chief financial officer, as defendants.
Nessler is asking the court to award damages to class members and further relief as deemed appropriate.
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