Coinbase hit with wave of lawsuits over customer data breaches
Coinbase faces multiple lawsuits following a data breach that exposed user information. At least six lawsuits were filed between May 15 and May 16, alleging inadequate security measures and poor handling of the breach. A New York federal court lawsuit claims Coinbase failed to protect sensitive personal data of millions, including names, addresses, and Social Security numbers. The breach resulted from a $20 million extortion attempt where cybercriminals accessed internal systems through bribed customer support agents. Plaintiffs argue that Coinbase's response was delayed and insufficient, leaving users vulnerable to identity theft and financial fraud. Additional lawsuits include claims of unjust enrichment and requests for Coinbase to purge sensitive data and hire third-party security auditors. Coinbase declined to comment on the lawsuits but stated it would not pay the ransom and plans to reimburse affected users, estimating costs between $180 million and $400 million. Following the breach disclosure, Coinbase shares initially dropped 7% but later rebounded by 9%.
