Coinbase is facing a new class action lawsuit claiming that investors suffered significant losses over the years due to the crypto exchange’s “omissions,” which have affected the company’s stock price.
In the May 22 complaint, investor Brady Nessler, on behalf of persons or entities who purchased or otherwise acquired publicly traded Coinbase securities between April 14, 2021, and May 14, 2025, claims that the exchange has a long list of “wrongful acts and omissions” that have led to the “precipitous decline in the market value of the Company’s common shares” affecting the Plaintiff and other Class members.
In October 2020, the company’s UK subsidiary, Coinbase Payments (CBPL), signed a voluntary agreement to prevent onboarding clients considered “high risk” by the regulator and reduce potential criminal activity on the CBPL platform.
The lawsuit alleges that the company made several “materially false and misleading” statements at the time that omitted that Coinbase Payments, Ltd. (CBPL) had been found guilty by the UK regulator of having “inadequate anti-money laundering focused systems to prevent high-risk individuals from using its platform, and that CBPL then breached the Agreement designed to address those deficiencies, creating legal exposure.”
Moreover, the Class action suit argues that the recent data breaches also resulted in significant losses and damages for stockholders, highlighting the May 15 statement from the crypto exchange.
The hackers attempted to blackmail the exchange, demanding $20 million in Bitcoin (BTC) to return the sensitive customer data. However, Armstrong revealed they refused to pay the ransom.
Based on this, Plaintiff seeks to “recover compensable damages caused by Defendants’ violations of the federal securities laws under the Securities Exchange Act of 1934 (the ‘Exchange Act’).”
