Coinbase Data Breach

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Coinbase Data Breach: What Victims Need to Know About Their Legal Rights

As cryptocurrency adoption grows, so do the risks. One of the largest digital currency platforms in the world, Coinbase Global, Inc., has faced multiple data breaches and hacking incidents—costing some customers tens of thousands of dollars. These security failures have prompted ongoing litigation and investigations into the platform’s practices.

If you’ve been impacted by a Coinbase account hack, it’s critical to understand your rights and legal options.

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What Is Coinbase?

Coinbase is a cryptocurrency exchange that allows users to buy, sell, store, and transfer digital assets like Bitcoin, Ethereum, and others. Founded in 2012, the platform now operates in over 100 countries, claims more than 3,500 employees, and oversees over $130 billion in assets.

Despite its prominence, Coinbase has experienced repeated security incidents and regulatory challenges—raising serious concerns about its commitment to protecting user information.

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A History of Coinbase Hacks and Security Breaches

Coinbase has been compromised multiple times over the past few years. In many of these cases, hackers gained access to user accounts, drained funds, and accessed personal data such as email addresses, IP addresses, transaction histories, and more. The Coinbase data leak could even put users in physical danger.

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Notable Incidents Include:

• March & May 2021: At least 6,000 Coinbase users had their accounts accessed by unauthorized parties, leading to significant financial losses.
• May 2022: A customer lost $96,000 in a SIM-swap attack and filed suit against Coinbase, alleging violations of federal and state financial laws.
• February 2023: Employees were targeted in a phishing campaign by the hacker group “0ktapus,” gaining access to internal systems and employee contact information.

In several of these cases, Coinbase has reportedly refused to reimburse affected users—fueling the legal backlash currently facing the company.

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Compliance Failures and Regulatory Scrutiny

Beyond hacking incidents, Coinbase has come under fire for serious compliance-related violations, which may have made these breaches more likely:

• $50 Million Penalty from the New York State Department of Financial Services for major internal control deficiencies
• $3.6 Million Fine from the Dutch central bank for operating without proper registration
• $5 Million Penalty from New Jersey regulators for selling unregistered securities

These repeated infractions point to systemic problems with Coinbase’s regulatory oversight and risk management procedures.

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Can You Take Legal Action Against Coinbase?

Yes. If your Coinbase account was hacked, and you suffered financial losses, you may have a legal claim.

While cryptocurrency is a relatively new financial space, digital exchanges like Coinbase are still subject to many state and federal consumer protection and securities laws. When platforms fail to meet these obligations—particularly around data security—they can and should be held accountable.

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Filing a legal claim may help you recover:

• Lost cryptocurrency or fiat funds
• Out-of-pocket expenses related to identity theft or account recovery
• Emotional distress or reputational harm
• Other damages related to the breach

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Talk to a Data Breach Attorney Today

If you were affected by a Coinbase data breach, don’t wait to get the legal help you need. An experienced data breach attorney can review your case, explain your rights, and pursue compensation on your behalf.

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Most firms handling these cases work on a contingency fee basis, meaning you don’t pay unless they recover money for you. To schedule a free consultation, contact our office today. Let’s work together to hold negligent platforms accountable—and help you get the compensation you deserve.

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