Coinbase hit by multiple data breach lawsuits
Users accuse Coinbase of poor security and slow response following a data breach involving stolen personal and financial information.
Coinbase faces multiple lawsuits after revealing a data breach involving bribed support agents leaking user information. At least six lawsuits were filed between 15 and 16 May, accusing the exchange of poor security and mishandling the breach.
One lawsuit filed in New York claims Coinbase failed to protect sensitive data of millions, including names, addresses, phone numbers, and partial Social Security numbers.
The complaint says the exchange’s response was slow and inadequate, putting users at risk of identity theft and fraud.
Other lawsuits allege Coinbase did not spend enough on security and demand compensation and stronger protections. One case asks the court to order Coinbase to delete sensitive data and hire third-party auditors.
Coinbase declined to comment on the lawsuits but confirmed it refused a $20 million ransom. It plans to reimburse users who lost crypto to phishing scams related to the breach. The company also fired involved customer support agents.
Following the breach announcement, Coinbase shares fell 7% but rebounded quickly, closing higher on 16 May.
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