Summary
- Coinbase is facing a lawsuit as shareholders suffered losses due to a data breach and UK regulatory violations.
- Investor Brady Nessler claimed that Coinbase's regulatory violations led to a decline in the company's market value and filed a lawsuit in court.
- Coinbase stated it would compensate for the extorted cryptocurrency, with compensation costs potentially reaching up to $400 million.
Global cryptocurrency exchange Coinbase is facing a class action lawsuit due to allegations of data breach and UK regulatory violations.
According to a report by Cointelegraph on the 26th (local time), Coinbase investor Brady Nessler has filed a lawsuit in the Pennsylvania federal court, claiming that "Coinbase's data breach and violations of the UK's Financial Conduct Authority regulations have caused a significant drop in the market value of the company's common stock, resulting in substantial losses and damages to shareholders."
Coinbase recently revealed that external cybercriminals bribed several customer support contractors to conspire and gain access to internal systems, stealing limited user account data. The attackers attempted to exploit the obtained data to extort approximately $20 million worth of cryptocurrency from users.
Coinbase has announced that it will compensate for the cryptocurrency extorted by the attackers, and the compensation costs for recovery could reach up to $400 million.
YM Lee
20min@bloomingbit.ioCrypto Chatterbox_ tlg@Bloomingbit_YMLEE
