A wave of Coinbase lawsuits has followed the exchange after facing a cyberattack and data breach in the previous week. Coinbase, which is among the biggest crypto exchanges in the world has went through severe security breach, resulting in the theft of user data on May 15. Now users have filed multiple lawsuits, increasing the legal difficulties of the platform. Let’s discuss.
Coinbase Lawsuits News: 6 Lawsuits Filed in 2 Days
The crypto exchange disclosed the data breach news on May 15 after attackers bribed several Coinbase customer support staff to provide access to the users’ data. With that, users’ personal information, including names, addresses, phone numbers, driving licenses, passports, transaction history, email addresses, and even the last digits of their special security numbers, was compromised, resulting in multiple Coinbase lawsuits.
The cybercriminal has asked for a reason of $20 million, which the exchange has refused to pay. As a result, six lawsuits were filed between May 15 and May 16 based on the allegations of poor security practices and mishandling of the breach situation, as well as failure to promptly handle and inform the affected users.
Coinbase Lawsuit Details & Compensation Plans
Among the first lawsuits is the Paul Bender Lawsuit, filed in New York on May 16, 2025, where the plaintiff claims that the exchange failed to implement and maintain reasonable security safeguards and provided a delayed and fragmented response to the breach.
The Coinbase lawsuit in Illinois and New York claims that the exchange failed to spend adequately on security. Interestingly, similar attacks were made on Binance and Kraken, but they blocked the attempts. As a result, more fingers are pointed at Coinbase for the failure to do the same.
The Coinbase cybersecurity attacks news highlights the security concerns in the crypto industry. Due to this, users can face immediate and long-term risks. Although the exchange has refused to offer a ransom, there’s user compensation (between $180 million and $400 million) and internal action like firing support agents in the plan.
Coinbase Stock (COIN) Price Reacts to Cyberattack News
With the Coinbase cyberattack news, the COIN stock price crashed immediately. However, the impact was not as drastic as many might have expected. More importantly, the stock recovered immediately after a minor consolidation, currency trading at $266.46 after a 9% surge.
This surge is due to its COIN’s inclusion in the S&P 500, replacing Discover Financial Services (NYSE: DFS). As the trading opens today, Monday, May 19, the investors’ activity is focused on the Coinbase stock price. Additionally, there’s no major action taken at press time on the Coinbase lawsuits. As a result, there’s significant uncertainty regarding its stock performance.
Frequently Asked Questions (FAQs)
The Coinbase data breach occurred when attackers bribed the exchange’s customer support staff, gaining unauthorized access to users’ data.
The compromised data includes names, addresses, personal number and mail, driving license, passports, transaction history and society security’s last 4 digit numbers.
There’s 6 lawsuit filed between May 15 and May 16, alleging poor security practices and mishandling of the breach.
Pooja Khardia
With a deep-seated passion for reading and five years of experience in content writing, Pooja is now focused on crafting trending content about cryptocurrency market.
As a dedicated crypto journalist, Pooja is constantly seeking out trending topics and informative statistics to create compelling pieces for crypto enthusiasts. Staying abreast of the latest trends and advancements in the field is an integral part of her daily routine, fueling a commitment to delivering timely and insightful coverage
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Source: https://coingape.com/trending/whats-happening-with-coinbase-wave-of-lawsuits-after-data-breaches/
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