Coinbase, a prominent cryptocurrency exchange, faces multiple legal challenges simultaneously. Within just two days, six lawsuits were filed against the company following a significant user data breach. These issues follow a class-action lawsuit filed in May concerning alleged violations of Illinois’ Biometric Information Privacy Act (BIPA). Plaintiffs Scott Bernstein, Gina Greeder, and James Lonergan claim Coinbase collected biometric faceprints for identity verification without consent, failed to disclose data retention policies, and shared information with third parties like Jumio and Onfido. This timing is especially problematic for Coinbase, as it’s set to debut on the S&P 500 index on May 19, 2025, a milestone driving stock prices up by 24%. This inclusion, requiring consistent profitability, offers immense benefits for the company and its investors. However, the positive anticipation was short-lived as a major data breach exposed sensitive user information, including names, Social Security number fragments, and government IDs. Affecting less than one percent of users, this incident could cost Coinbase up to $400 million in remediation efforts. These legal battles highlight ongoing concerns about Coinbase’s data security practices, especially with its new S&P 500 status. The company, which reported a net income of $65.6 million last quarter, now faces both reputational and financial setbacks, causing stock prices to drop by over seven percent since the breach disclosure. As the company works on strengthening its security through a new U.S.-based support hub, addressing these legal disputes is crucial for maintaining investor confidence in this volatile market environment.