Coinbase, the largest cryptocurrency exchange in the United States, has faced multiple class action lawsuits after a data breach in May 2025 exposed 69,000 users, sparking anger and legal action over the alleged security failure.
A wave of lawsuits targeting Coinbase’s security flaws
Coinbase, the leading cryptocurrency exchange in the United States, filed at least six class action lawsuits between May 15 and May 16, 2025. The lawsuits stemmed from a major data breach disclosed in early May, affecting 69,461 users. Hackers bribed overseas support agents to steal personal and financial data, prompting Coinbase to provide a $20 million bounty to obtain arrests that led to the culprit.
Read more: Coinbase security violation scandal: $20 million hunting data thieves
Legal lawsuits filed in federal courts in New York and California accused Coinbase of failing to maintain strict security protocols, leaving users vulnerable to identity theft and financial fraud.
These lawsuits require that Coinbase’s negligence may lead to “substantive, direct and ongoing threats” to affected users and potential long-term consequences due to the inability to recover compromised data. A California lawsuit even calls for jointly scanning sensitive user data and hiring a third-party auditor to test its security system.
Meanwhile, the community has attracted attention to the scale of the violation, noting that it started as early as December 26, 2024 and continued until Coinbase received a reliable ransom note in May 2025. The exchange refused to pay a $20 million ransom and had been marked to induce the use of Crypto at a cost of $100, thus giving the $100 fee to $10 billion from the $100 fee and receiving a $100 fee from the $100 fee. SEC.
Coinbase faces legal challenges repeatedly
Coinbase violations have sparked strong opposition on social media platforms such as X. X.
Coinbase’s share price fell 3.2% in trading on May 27, 2025 after the lawsuit was disclosed, reflecting investors’ concerns about financial and reputational consequences.
Source: Yahoo Finance
Coinbase has not commented directly on the lawsuit yet, but points out a blog post outlining its response to the violation. Exchange documents have just confirmed the timetable of violations and the number of affected users. Herman Jones, LLP said the incident added to Coinbase’s legal challenges as it faced similar lawsuits over security mistakes in 2023.
learn more: Is Coinbase safe and trustworthy in 2025?
The ongoing legal battle highlights the increasing scrutiny of cryptocurrency exchanges as they maintain a balance between innovation and user protection in a rapidly growing industry.
