Coinbase Lawsuit, Exchange Hacks & New Binance Features: Key Market Trends

Coinbase Faces New Lawsuit Over Data Breach and Stock Drop

Coinbase and two of its executives are facing another proposed class-action lawsuit following a significant drop in the company’s stock price after the disclosure of a user data breach earlier this month. The lawsuit, filed by investor Brady Nessler on May 22 in a Pennsylvania federal court, alleges that both the data breach and a previously undisclosed violation of an agreement with the UK’s Financial Conduct Authority (FCA) led to a “precipitous decline in the market value of the Company’s common shares,” resulting in “significant losses and damages” for shareholders, according to TradingView.

On May 15, Coinbase revealed that it could face damages of up to $400 million after a $20 million extortion attempt, which involved several customer support agents being bribed to access internal systems and steal user account data. Following the disclosure, Coinbase (COIN) shares dropped by 7.2% to close at $244 on May 15, but rebounded by 9% to close at $266 on May 16. By May 23, the stock closed down over 3% at $263, with a further after-hours drop of $1.62. Despite these fluctuations, COIN is up nearly 6% so far this year.

Date	COIN Closing Price	Change
May 15, 2025	$244	-7.2%
May 16, 2025	$266	+9%
May 23, 2025	$263	-3% (plus $1.62 after-hours drop)

The FCA fined Coinbase’s UK arm $4.5 million in July 2024 for breaching a 2020 voluntary agreement that prevented the exchange from onboarding high-risk customers. The FCA found that Coinbase had onboarded 13,416 such customers. Nessler claims that the fine led to a stock drop of over 5%, closing at $231.52 on July 25, 2024. The lawsuit also alleges that Coinbase failed to disclose this agreement breach when it first listed on Nasdaq in April 2021, which allegedly led to an artificially inflated stock price. The class-action suit covers anyone who bought Coinbase stock between April 14, 2021, and May 14, 2025, and seeks damages and a jury trial. CEO Brian Armstrong and CFO Alesia Haas are also named as defendants. Another lawsuit in Illinois alleges Coinbase failed to notify users about the collection and use of their biometric data.

Coinbase faces up to $400 million in damages from the breach.
Shares dropped 7.2% after breach disclosure, then rebounded 9%.
FCA fined Coinbase UK $4.5 million for onboarding 13,416 high-risk customers.
Multiple lawsuits allege mishandling of user data and lack of disclosure.

Source: TradingView

The class suit was filed on behalf of anyone who bought Coinbase stock between April 14, 2021, and May 14, 2025, and is asking for damages and a jury trial.

Key Takeaway: Coinbase is under legal pressure for both a major data breach and regulatory violations, with significant financial and reputational consequences.

Trump’s Crypto Stance and Binance’s Reputation

According to The Times, the recent embrace of cryptocurrency by former US President Donald Trump may help Binance CEO Changpeng Zhao distance himself and the exchange from its controversial past. The article discusses how Trump’s pro-crypto rhetoric could influence regulatory and public perceptions of major crypto exchanges like Binance, which has faced scrutiny over compliance and transparency issues in the past.

While the article does not provide specific figures or new allegations, it highlights the potential for political developments in the US to impact the reputation and regulatory environment for leading crypto platforms.

Trump’s support for crypto could benefit Binance’s public image.
Regulatory scrutiny remains a challenge for major exchanges.

Source: The Times

Key Takeaway: Political shifts in the US may offer Binance an opportunity to improve its standing amid ongoing regulatory challenges.

Crypto Exchange Hacks Highlight Need for Secure Wallets

Recent security incidents at Coinbase and Cetus have reignited concerns about the safety of digital assets on centralized and decentralized exchanges. As reported by Bitcoinist.com, on May 22, hackers exploited a vulnerability in the Cetus automated market maker (AMM), draining $223 million worth of digital assets within 24 hours. The Sui Network and Cetus have since collaborated to freeze much of the stolen assets.

The previous week, Coinbase suffered a breach in which over 69,000 users’ personal data—including the last four digits of social security numbers, government ID images, and portions of bank account numbers—was compromised. The breach was facilitated by bribed overseas support agents and led to a $20 million extortion attempt, which Coinbase refused. The company estimates potential damages of up to $400 million.

Incident	Exchange	Impact
Cetus Hack	Cetus (DEX)	$223 million drained
Coinbase Breach	Coinbase (CEX)	69,000+ users’ data compromised; $20 million extortion attempt; up to $400 million in damages

These incidents have prompted renewed interest in non-custodial wallets like Best Wallet, which aims to capture 40% of the crypto wallet market by 2026. Best Wallet is a no-KYC, non-custodial wallet, meaning users retain control of their private keys and do not need to submit personal identification. The wallet’s native token, $BEST, is available for $0.025085 per token, with over $12.7 million raised and 234 million $BEST tokens staked to date. Holding $BEST offers perks such as lower transaction fees, higher staking rewards, and governance rights.

Cetus hack resulted in $223 million in losses.
Coinbase breach affected over 69,000 users and could cost up to $400 million.
Best Wallet offers enhanced security and privacy features, with a growing user base and token ecosystem.

Source: Bitcoinist.com

The data gathered includes over 69,000 customers’ personal information, the last four digits of their social security numbers, images of their government IDs, and portions of their bank account numbers.

Key Takeaway: The recent hacks underscore the importance of secure, non-custodial wallets for protecting digital assets and personal information.

Bitget’s Blockchain4Youth Marks Two Years of Global Impact

Bitget, a leading cryptocurrency exchange and Web3 company, is celebrating the second anniversary of its Blockchain4Youth initiative, as reported by both Morningstar and GlobeNewswire. The program has engaged over 8,000 participants worldwide and issued more than 3,000 certificates, focusing on empowering students, young developers, and aspiring entrepreneurs with blockchain and Web3 knowledge.

Blockchain4Youth has expanded to over 70 countries and regions, collaborating with universities and educational institutions globally. In March 2025, the initiative participated in the Google Developer Group’s “Build with AI” Hackathon, inspiring 130 students to explore the intersection of blockchain and AI. Over the past year, the program has hosted more than 80 campus lectures and continues to grow through educational partnerships, hackathons, and online courses.

8,000+ participants and 3,000+ certificates issued globally.
Active in over 70 countries and regions.
80+ campus lectures and collaborations with top universities.
Participation in major events like the “Build with AI” Hackathon.

Bitget serves over 120 million users in 150+ countries and regions, offering a multi-chain crypto wallet, token swap, NFT marketplace, and DApp browser. The company is also the Official Crypto Partner of LALIGA in several markets and partners with prominent athletes to promote crypto adoption.

Sources: Morningstar, GlobeNewswire

“Over the last two years, Blockchain4Youth has evolved from an idea into a global movement,” said Vugar Usi Zade, COO of Bitget.

Key Takeaway: Bitget’s Blockchain4Youth initiative is making significant strides in blockchain education and youth empowerment, with a growing global footprint and strong institutional partnerships.

Binance Launches Live Trading on Binance Square

Binance has introduced Live Trading on its social network, Binance Square, enabling users to follow livestreams and execute trades in real time, as reported by FinanceFeeds. This new feature allows users to copy trading strategies from verified creators during live sessions and immediately act on Spot or Futures trades. The interactive environment is designed to make trading more accessible and engaging, combining live updates, education, and instant execution.

Creators with at least 1,000 followers can showcase up to 100 previous trades, pin strategies for greater visibility, and earn a 50% commission when users trade using their shared ideas. Additional incentives include special livestreams, trading competitions, and campaigns to boost creator presence and audience interaction. The Binance Square Live Trading Incubation Program is open to creators with fewer than 5,000 followers.

Live Trading integrates real-time strategy sharing and execution.
Creators can earn commissions and grow their audience.
Over 35 million people use Binance Square monthly.
Binance supports over 270 million users in more than 100 countries.

Binance Square is positioned as a hub for crypto learning, community engagement, and now live trading, supporting Binance’s mission to make crypto more interactive and accessible.

Source: FinanceFeeds

“Live Trading is designed to make trading more accessible, interactive, and engaging,” said Jeff Li, Head of Product at Binance.

Key Takeaway: Binance’s new Live Trading feature on Binance Square enhances user engagement and learning, offering real-time trading opportunities and incentives for content creators.

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