Coinbase, the United States -based crypto currency exchange, is facing a collective case filed by investor Brady Nessler. The case was submitted to the Court of Eastern Region of Pennsylvania, and it was reported that all people and organizations that have acquired the values of the public coinbase between 14 April 2021 and 14 May 2025.
Coinbase case
Nessler and his lawyers claim that CB Payments Limited (CBPL), a subsidiary of Coinbase, made public misleading and unreal statements. Last year, the United Kingdom Financial Behavior Authority (FCA) fined CBPL about $ 3.5 million ($ 4.5 million) on the grounds that it offers high -risk 13,416 customers electronic money services. In the case, after the emergence of this penalty Coinbase’s stock value of $ 13.52, ie a 5.52 percent decrease was reported.
The cause of the penalty for CB Payments Limited was based on the fact that high -risk users are taken to the platform and the service of these users. In the statements made by the management staff, the penalty of the company’s criticism of risk management processes said.
Data Leakage and Financial Results
Another issue in the case was Coinbase’s recent data leakage. Company officials, some customer representatives abroad in exchange for bribery and the company’s monthly users of 1 percent of the data of less than 1 percent announced. According to the official application to the Maine Chief Public Prosecutor’s Office, a total of 69,461 people were affected by this incident.
“We refused to realize the illegal payment requested by the criminals and allocate important resources to strengthen our safety.”
The stolen data included names, addresses, telephones, e-mail, partially masked social security and bank account numbers, some bank identifiers, government identity images, account data and limited level of corporate information. Following the emergence of the incident, the company said that he received an e-mail containing a ransom demand of $ 20 million and did not fulfill this request. As a result of this incident, it was shared that he envisaged a improvement of $ 180 million to 400 million dollars and customer compensation expenses.
Immediately after the spread of news about the security violation, Coinbase shares suffered a depreciation of more than 7 percent; However, the share price recovered again in a short time.
Scope of the case and demands
In the case filed by Brady Nessler, CEO Brian Armstrong and Finance Director Alasia Haas were also defendants. NESS, on behalf of everyone on behalf of the compensation of damages and the court requested the application of additional sanctions deemed appropriate, he said.
“We argue that the explanations made by the company management are not transparent and true. We will use legal ways to meet possible damages.” – Nessler’s lawyers
The developments indicate the necessity of Coinbase to pay more attention to compliance with regulations and protection of customer data. The company is expected to make various strengthening in internal audit processes to prevent the future from encountering similar problems in the future.
We have seen such collective cases in the crypto currency world, and probably this will not get results like others. In the United States, it is very widespread collective cases open by people who argue that large companies have been damaged by various moves and hope for financial gain.
The collective lawsuit for the regulation violation and vulnerability of Coinbase, reveals the importance of taking more strict measures in transparency, customer safety and legal compliance. Both investors and sector followers closely follow the measures taken and the new standards created. These developments are considered to be an example in terms of trust and stability in digital asset exchanges.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
