Coinbase Faces Another Data Breach Lawsuit Claiming Stock Drop Damages

After disclosing a user data breach earlier this month and for allegedly failing to disclose a violation of an agreement with a UK regulator, the Coinbase and two executives have been hit with another proposed class-action lawsuit over the crypto exchange’s stock price drop. 

According to Cointelegraph, Brady Nessler, Coinbase investor said in a May 22 lawsuit filed in a Pennsylvania federal court that the data breach and the alleged broken agreement with the UK’s Financial Conduct Authority resulted in a “precipitous decline in the market value of the Company’s common shares,” causing stockholders to suffer “significant losses and damages.”

On May 15, Coinbase said that its damages bill could run up to $400 million after it was hit with a $20 million extortion attempt four days earlier.

According to Nessler, the Coinbase (COIN) shares dropped by 7.2% to close at $244 on May 15 because of closure. The stock also did a stage comeback, that spiked 9% and hit $266 by the closing bell on May 16.

Texas governor signals support for Bitcoin reserve bill

Greg Abbott, a Texas Governor has signalled support for a bill recently passed by the state House of Representatives that would establish a strategic cryptocurrency reserve.

Abbott shared a Techstory article about Texas state lawmakers' attempts to establish a Bitcoin BTC $109,664 reserve on X on May 22. The story noted that, about three months after the bill's introduction, Abbott now has the final say over whether SB 21, the bill in question, passes. 

Abbott declared in 2021 that he was a “crypto law proposal supporter” since he took office and that he would back measures to make Texas a “crypto capital” by 2024. Following the federal elections in 2024, a few state governments, including Texas, suggested creating a strategic cryptocurrency reserve. Kelly Ayotte of New Hampshire became the first governor to sign a Bitcoin reserve bill into law on May 6.