Coinbase, one of the largest cryptocurrency exchanges globally, is involved in several significant lawsuits in 2025 addressing data breaches, securities law violations, deceptive marketing, and cybersecurity failures. These lawsuits reflect ongoing regulatory scrutiny and legal battles faced by crypto platforms as they navigate complex compliance requirements and escalating consumer protection concerns in a rapidly evolving industry.
Coinbase Lawsuit: Data Breach Class Action Lawsuit
In May 2025, Coinbase disclosed a major data breach involving rogue overseas contractors who stole sensitive personal information of nearly 70,000 users, such as Social Security numbers, bank details, and transaction histories. Milberg, a well-known law firm, promptly filed a class action lawsuit alleging that Coinbase failed to adequately protect user data, exposing customers to fraud and identity theft. The lawsuit seeks statutory, punitive, and monetary damages for the breach and criticizes Coinbase’s limited transparency and insufficient guidance to protect affected users.
Securities Law Litigation
Coinbase faces lawsuits alleging that the platform sold unregistered securities by listing certain crypto assets as “digital asset securities” without proper registration under U.S. securities laws. The assets in question include tokens like Algorand, Decentraland, Polygon, Near Protocol, Uniswap, and Solana. Plaintiffs argue that Coinbase knowingly omitted crucial disclosures and engaged in deceptive marketing tactics, pressuring users to purchase these securities without regulatory protections. While Coinbase contends it has not sold unregistered securities, litigation and regulatory reviews continue.
Regulatory Enforcement and Settlements
- The Securities and Exchange Commission (SEC) filed enforcement actions against Coinbase but later jointly stipulated to dismiss claims in early 2025, though without an assessment of merits.
- State regulators, including Oregon’s Attorney General, have pursued actions regarding unauthorized securities sales and violations of consumer protection laws.
- Coinbase settled with FirstCash, Inc. in July 2025 over military lending violations.
Cybersecurity and Compliance Issues
Alongside lawsuits, Coinbase has faced regulatory penalties for inadequate cybersecurity measures making it vulnerable to criminal conduct. The company was ordered to pay substantial fines and strengthen internal controls following investigations by financial authorities.
Impacts on Consumers and Industry
- Potential financial losses and identity theft risks for customers affected by the breach.
- Heightened scrutiny on crypto platforms’ compliance with securities laws and transparency obligations.
- Legal precedents shaping how digital assets are regulated and how crypto firms operate in the U.S.
Current Status and Outlook
Coinbase continues to defend itself vigorously, cooperating with regulators and navigating ongoing litigation. Court rulings partially favor Coinbase, while other claims proceed to discovery and trial preparation. The evolving regulatory landscape and leadership changes at the SEC influence case dynamics. Coinbase aims to balance innovation with compliance to regain investor and consumer confidence.
Consumer and Business Guidance
- Consumers should monitor their accounts closely for unauthorized activity and leverage identity protection services when affected by breaches.
- Potential crypto investors should understand asset classifications and regulatory risks.
- Businesses in crypto should prioritize cybersecurity, legal compliance, and transparent disclosures.
- Legal professionals must stay abreast of shifting regulatory policies governing crypto to advise clients effectively.
Conclusion
The Coinbase lawsuits of 2025 encapsulate the complex challenges crypto exchanges face amid regulatory crackdowns, technological vulnerabilities, and evolving market demands. The outcomes will critically affect the future of crypto regulation, consumer protections, and institutional accountability in digital asset trading.
