Coinbase lawsuits are piling up following a significant data breach that exposed personal information of users after cybercriminals bribed overseas support staff.
Between May 15 and 16, at least six class-action lawsuits were filed against the crypto exchange. Plaintiffs are accusing the company of negligence, inadequate cybersecurity, and an insufficient response.
These lawsuits have intensified scrutiny on the company, with legal and regulatory consequences likely to follow.
The U.S. Department of Justice is investigating the cyberattack, but Coinbase itself is not under DOJ investigation, according to Reuters.
Class-Action Coinbase Lawsuits Allege Negligence
One of the first lawsuits, filed in the U.S. District Court for the Southern District of New York by Paul Bender, claims Coinbase failed to uphold basic security protocols and placed users at serious risk of identity theft and fraud.
According to Bender’s complaint, Coinbase did not promptly notify affected users, offer identity protection, or provide timely support.
