The cryptocurrency exchange Coinbase is once again under judicial pressure: investors have filed a new class-action lawsuit, accusing the company of concealing important information and negligence in protecting its users’ data.
This is reported by Finway
The plaintiffs claim that Coinbase provided false or misleading information in its registration documents related to its initial public offering (IPO), which took place between April 14, 2021, and May 14, 2025. In particular, the company allegedly failed to disclose that its UK subsidiary, CB Payments Limited (CBPL), violated an agreement with the UK’s Financial Conduct Authority, which prohibited providing services to high-risk clients. As a result, CBPL served over 13,000 such clients, leading to a fine of £3.5 million ($4.5 million at the time of filing the lawsuit).
Following the announcement of the fine, Coinbase’s shares dropped by more than 5%, which, according to the plaintiffs, indicates that the company should have disclosed these risks earlier, as they significantly affected the stock price and investments.
Past Issues and Lawsuits
It is worth noting that last year, Coinbase faced criticism for the illegal sale of unregistered securities, including tokens such as Solana (SOL), Polygon (MATIC), Near Protocol (NEAR), and others. The plaintiffs at that time claimed that the platform acted as a securities broker without the appropriate registration.
Data Breaches and Biometric Information
Additionally, a recent data breach, recorded by crypto analyst ZachXBT in March and acknowledged by the platform in May, resulted in losses of up to $400 million. This led to two new class-action lawsuits against Coinbase. Furthermore, residents of Illinois have filed a lawsuit over violations of the biometric information privacy law and the unlawful collection of biometric data.