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.

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[.]”

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the COIN investigation about?

We are investigating whether Coinbase may have misrepresented its security controls and delayed disclosing this serious cybersecurity incident.

WHAT SHOULD I DO?

I worked at COIN. What should I do?

If you were an employee of COIN, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in COIN, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any COIN investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.