Coinbase faces a new class action lawsuit claiming investors have suffered huge losses over the years as crypto exchanges “omitted” affects the company’s share price.
Coinbase accused of key “omitted”
Last week, a Coinbase investor filed a class action lawsuit against Coinbase in eastern Pennsylvania, CEO Brian Armstrong and CFO Alesia Hass alleged that the company’s shareholders had suffered “significant losses and losses” over the past four years.
In a May 22 complaint, investor Brady Nessler, on behalf of the person or entity who purchased or obtained a publicly traded Coinbase Securities between April 14, 2021 and May 14, 2025, claimed that the exchange had a long list of “misculptures and omissions” that resulted in a “decreased market value of competing members” that would affect the market value of ordinary people in the company and other ordinary people.
New lawsuit against crypto exchange Coinbase, Armstrong, and Hass. Source: CourtListener
Among the omissions, the lawsuit lists the company’s recent data breach and the failure to disclose its 2020 agreement with the Financial Conduct Authority (FCA).
In October 2020, the company’s UK subsidiary Coinbase Payments (CBPL) signed a voluntary agreement to prevent customers deemed “high risk” by regulators and reduce potential criminal activity on the CBPL platform.
The lawsuit says the company is omitting Coinbase Payments, Ltd. (CBPL) omission made several “substantial errors and misleading” statements, and the British regulator was found guilty of “insufficient” anti-joint venture hand washing inadequate focus systems to use its platform, and statutory agreements on its platform involved these breaches and involving these breaches.
It is worth noting that the company’s common stock reportedly fell by $13.52 per share, down 5.52%, when an article titled “Coinbase UK Units fined for Financial Crime Violation” was published during market time on July 25, 2024. FCA fines Coinbase Coinbase’s UK subsidiary $4.5 million for a fine of $4.5 million.
Data breach leads to class action lawsuit
In addition, the class action case believes that the recent data breach has also caused huge losses and losses to shareholders, highlighting the cryptocurrency exchange’s May 15 statement.
As Bitcoiners reported, Brian Armstrong shared that threat actors bribed a few customer support contractors to access Coinbase’s internal tools, violating names, email addresses, limited transaction history and a portion of social insurance users of 1% of the exchange’s users.
Hackers attempt to ransom exchanges, requiring Bitcoin (BTC) to return sensitive customer data. However, Armstrong revealed that they refused to pay the ransom.
The lawsuit noted that the price of Coinbase common stock fell by $19.85, down 7.2%, down $244 on May 15, 2025. Since then, multiple lawsuits have been filed against the cryptocurrency exchange and the U.S. Department of Justice investigation has begun.
Based on this, the plaintiff attempted to “be compensated for violations of the defendant’s violation of the Federal Securities Act under the Securities Exchange Act of 1934 (the Exchange Act).
Bitcoin trades at $109,638 in the one-week chart. Source: BTCUSDT on TradingView
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