United States – Leading crypto exchange Coinbase is once again in legal crosshairs, as a new class action lawsuit alleges the company failed to properly secure customer information, resulting in unauthorized access and potential data exposure.

The lawsuit, filed in the Northern District of California, claims Coinbase allowed malicious third parties to breach user accounts, violating consumer protection laws and causing financial losses. The complaint cites a recent breach-related incident that allegedly compromised sensitive data and triggered a noticeable drop in Coinbase stock (COIN), prompting concerns among shareholders.

The plaintiffs argue that Coinbase failed to act on known vulnerabilities in its platform, and that its internal controls did not prevent attackers from exploiting user data. They are seeking monetary damages and corrective measures to strengthen the platform’s security practices.

This legal action follows previous reports of Coinbase users facing difficulties recovering stolen funds after being targeted in phishing attacks or account breaches. Critics argue the exchange has not been proactive in compensating affected users or improving transparency around security incidents.

“Coinbase has an obligation to safeguard user data and digital assets. Failure to do so has real-world consequences for investors and customers alike,” the lawsuit asserts.

Coinbase has not publicly commented on the new filing but has previously stated that user security remains a top priority and that it cooperates with law enforcement in cases of cybercrime.

The news comes amid increased regulatory pressure on U.S.-based crypto platforms and heightened scrutiny of customer data handling in the wake of major cyberattacks across the tech industry.

About Coinbase:

Founded in 2012, Coinbase is one of the largest cryptocurrency exchanges in the world, offering trading, custody, and educational services for retail and institutional users.

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Author
Surabh Yadav