Coinbase and two of its executives are facing a proposed class-action lawsuit filed by investor Brady Nessler, alleging damages from a significant drop in Coinbase’s stock price following the disclosure of a user data breach and a violation of a UK regulator agreement.

The lawsuit claims that Coinbase’s stock value plummeted due to the breach and a $4.5 million fine imposed by the UK’s Financial Conduct Authority for onboarding high-risk customers, which Coinbase allegedly failed to disclose during its 2021 Nasdaq listing.

Following the May 2025 breach disclosure, Coinbase’s shares initially dropped 7.2% but later recovered; stock performance remains volatile amid ongoing legal challenges and previous lawsuits related to user data protection failures.

The lawsuit seeks damages on behalf of all Coinbase stock purchasers from April 2021 to May 2025, naming CEO Brian Armstrong and CFO Alesia Haas as defendants, while Coinbase has not yet commented on the suit.