Coinbase Faces Wave of Lawsuits Over Customer Data Breach

The cryptocurrency exchange Coinbase is facing a wave of lawsuits following revelations that several customer support agents were bribed to leak user information.

Coinbase Faces Wave Of Lawsuits Over Customer Data Breach

Between May 15 and May 16, at least six lawsuits were filed, accusing Coinbase of failing to secure personal data and mishandling the aftermath of the breach.

In a complaint filed in a New York federal court on May 16, plaintiff Paul Bender alleged that Coinbase failed to adequately protect the sensitive personal information of millions of users. A day earlier, on May 15, Coinbase had disclosed that it received a $20 million extortion attempt after a group of cybercriminals bribed multiple support agents to access internal systems and steal user data.

The stolen information included names, addresses, phone numbers, emails, the last four digits of Social Security numbers, some banking information, driver’s licenses, passports, and account data such as balance snapshots and transaction histories.

The plaintiff accused Coinbase of failing to implement and maintain reasonable security measures, exposing users to “serious and ongoing risks.” The complaint also stated that Coinbase’s response to the incident was “delayed, inconsistent, and inadequate.”

Users Are Suing Coinbase, Alleging The Exchange Failed To Protect Their Sensitive Data
Users Are Suing Coinbase, Alleging The Exchange Failed To Protect Their Sensitive Data

“Users were not promptly or fully informed of the incident. Coinbase failed to take concrete steps to mitigate harm, did not provide identity protection services, or offer clear guidance to affected individuals,” the complaint said.

The plaintiffs warned that users could face a high risk of identity theft and financial fraud, with long-term or potentially irreversible consequences due to the permanent exposure of sensitive data.

Multiple lawsuits with similar allegations

Two other lawsuits filed in New York federal court raised similar accusations. A fourth lawsuit added a charge of unjust enrichment, arguing that Coinbase failed to adequately invest in its data security infrastructure. All of these lawsuits seek damages and call for the court to require Coinbase to implement measures to better protect user data.

Meanwhile, another lawsuit filed in California on May 15 also made similar allegations but additionally demanded that Coinbase delete all sensitive data related to the plaintiffs and hire an independent third-party auditor to evaluate its security systems.

Love

0.0/5

Love

Latest

Binance.us Accused Of Political Favoritism After Listing Trump Family’s Usd1 Token

News | Editor Choice | Policy & Regulations

Binance.US Accused of Political Favoritism After Listing Trump Family’s USD1 Token

Binance.US is facing a wave of fierce criticism after listing the Trump family’s USD1 stablecoin, just a week after Donald Trump’s controversial pardon of Changpeng Zhao — a move many see as a “political favor” between the White House and the crypto world.

Spacex Moves $31 Million In Bitcoin, What Is Elon Musk Planning

News | Bitcoin | Editor Choice

SpaceX Moves $31 Million in Bitcoin, What Is Elon Musk Planning?

SpaceX’s sudden $31 million Bitcoin transfer within just one week has sent shockwaves through the market, sparking speculation that Elon Musk may be preparing for a mysterious strategic move.

21shares Files For Hype Etf, While Bitwise’s Solana Etf Records

News | Altcoin | Editor Choice

21Shares Files for HYPE ETF, While Bitwise’s Solana ETF Records

The crypto ETF market is heating up as 21Shares and Bitwise roll out new products, signaling Wall Street’s growing interest in altcoins.

Bitcoin Eyes A Hopeful November Amid Fed Division On December Rate Cut

News | Bitcoin | Editor Choice

Bitcoin Eyes a Hopeful November Amid Fed Division on December Rate Cut

Following the Federal Reserve’s widely expected rate cut, the crypto market has yet to show signs of recovery as internal divisions over a potential December easing weigh on sentiment, making Bitcoin’s short-term outlook more cautious than ever.

Ethereum’s Key Changes After The Fusaka Upgrade

News | Altcoin | Editor Choice

Ethereum’s Key Changes After the Fusaka Upgrade

The Fusaka upgrade marks a pivotal step in Ethereum’s journey toward large-scale scalability, promising faster transaction speeds, enhanced security, and laying the foundation for the next explosive phase of the world’s leading blockchain.

Screenshot 2025 10 20 091338