Cryptocurrency exchange Coinbase is facing intense legal scrutiny following a class-action lawsuit filed against it by investor Brady Nessler. The suit alleges misleading public statements by Coinbase’s subsidiary CBPL, which was fined £3.5 million by the UK’s Financial Conduct Authority (FCA) for serving high-risk customers. This, in turn, led to a stock price drop of $13.52 and 5.52% value decrease. The lawsuit highlights the impact of Coinbase’s recent data breach on its image, which affected over 69,000 users and exposed sensitive information like names, contact details, and partially masked financial identifiers. Despite facing a ransom demand of $20 million, Coinbase refused to pay, instead focusing on security enhancements and customer redressal, with estimated costs ranging up to $400 million. This lawsuit also implicates Coinbase CEO Brian Armstrong and CFO Alesia Haas for potential misrepresentations in reporting practices between 2021 and 2025, as the legal team seeks damages for affected parties. These proceedings underscore the need for increased regulatory compliance and robust data protection within the cryptocurrency industry.