The lawsuit names Coinbase CEO Brian Armstrong and CFO Alesia Haas among others. It accuses them of not disclosing a data leak tied to insider misconduct and an FCA fine, which allegedly caused the company’s stock to drop.
According to court documents, the data breach involved a $20 million extortion attempt. Hackers stole personal user data by bribing third-party customer support agents. Coinbase admitted the breach affected less than 1% of users, but the news wasn’t shared until May 15, 2025. That day, Coinbase shares fell 7.2%, closing at $244.
The complaint also cites a UK Financial Conduct Authority fine. On July 25, 2024, the UK subsidiary of Coinbase, CB Payments Ltd., was fined £3.5 million ($4.5 million). It was for violating a 2020 consent order that barred the signing up of high-risk customers. Despite this, 13,416 high-risk accounts were allowed, processing $226 million in crypto transactions.
Nessler is asking for class action status, financial damages, legal costs, and a jury trial. Coinbase has not released a statement on the case.
While COIN shares briefly bounced back, they dropped again on May 23, closing at $263.1, down 3.23% for the day.
