Coinbase’s Legal Circus: Investors Sue Over Stock Plunge and Data Drama! 🎪💰

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Well, folks, grab your popcorn! 🍿 An investor is throwing a lawsuit at Coinbase, claiming this US-based crypto exchange has been playing fast and loose with securities laws, causing its stock to take a nosedive! 🎢

Brady Nessler, our brave hero, has filed a class action lawsuit in the Eastern District of Pennsylvania. He’s representing anyone who bought Coinbase securities between April 14th, 2021, and May 14th, 2025. Talk about a long game! 🕰️

According to Nessler’s legal eagles, Coinbase has been telling some whoppers about its subsidiary, CB Payments Limited (CBPL). I mean, who knew crypto could be so dramatic? 🎭

Last year, the UK’s Financial Conduct Authority (FCA) slapped CBPL with a £3.5 million fine (that’s about $4.5 million for us Yanks) for allegedly signing up 13,416 high-risk customers. Oops! 😬 This news sent Coinbase’s stock tumbling down by $13.52 per share, or 5.52%. Yikes!

But wait, there’s more! Nessler’s suit also points to a recent data breach. Coinbase claims that some sneaky criminals bribed a few overseas customer support agents to swipe data from less than 1% of their monthly users. A filing with the Maine Attorney General’s Office says 69,461 people were affected. That’s a lot of unhappy campers! 🏕️

What did the hackers get? Oh, just names, addresses, phone numbers, email addresses, and even some masked social security numbers (the last 4 digits only, because why not?). They really went for the gold! 🥇

Coinbase found out about the hack when they received an email demanding a $20 million BTC ransom. Spoiler alert: they said no! Now they’re estimating they’ll cough up between $180 million to $400 million in remediation costs and customer reimbursements. Cha-ching! 💸

Coinbase’s stock took a hit of over 7% the day the breach news broke, but like a phoenix, it rose again later that week. Talk about a comeback! 🔥

Nessler’s suit also drags in Coinbase’s bigwigs, CEO Brian Armstrong and CFO Alesia Haas, as defendants. Looks like they’re in for a wild ride! 🎢

In the end, Nessler is asking the court to award damages to class members and whatever else they think is fair. Stay tuned, folks! This legal drama is just getting started! 🎬

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2025-05-27 20:04