investors in Coinbase Global, Inc. saw the price of their shares slide about 7% after the company announced that it experienced a material cybersecurity incident, raising questions about the adequacy of its internal controls and disclosure processes.
Hagens Berman has opened an investigation into possible securities law violations and urges Coinbase investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys.
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Coinbase Global, Inc. (COIN) Investigation:
The investigation focuses on the propriety of Coinbase’s repeated claims that it has administrative, technical, and physical security measures and controls in place, maintains a robust information security program, and has developed and implemented sufficient cybersecurity risk management processes.
The company’s claims came into question on May 15, 2025, when Coinbase disclosed a material cybersecurity incident involving a threat actor that obtained access to nearly 70,000 customers’ personal information.
The company reported receiving an email from an unknown threat actor claiming to possess customer account information and internal documentation. The actor allegedly obtained this data by paying contractors or employees to extract it from Coinbase’s systems. The company stated that it had previously detected these unauthorized data accesses and estimated remediation and customer reimbursement costs could reach $400 million.
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Then, on May 18, 2025, further questions regarding the timeliness of Coinbase’s disclosure of this serious cyber threat and adequacy of security controls arose when The Business Times reported that Coinbase rivals Binance and Kraken had been targeted by the same type of hack disclosed by Coinbase, but were able to fend off the attacks without losing customer data. Significantly, BT reported that “last December, security personnel at several rival exchanges became aware of hackers targeting specifically large Coinbase holders[]” and “[a]t least one exchange notified Coinbase’s security team through Telegram multiple times[.]”
“We’re investigating whether Coinbase may have misrepresented its security controls and delayed disclosing this serious cybersecurity incident,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
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Source: prnewswire
