Hackers have again targeted one of the world’s largest cryptocurrency exchanges, Coinbase Global, Inc. (COIN). The platform has acknowledged multiple data breaches that have affected both customers and employees. In some cases, the security failures have cost customers tens of thousands of dollars. Coinbase is currently facing litigation regarding these data breaches.
The national securities and cryptocurrency law firm Levin Law, P.A. (“Levin Law”) is investigating claims related to Coinbase account hacking. Aggrieved customers are strongly encouraged to contact Levin Law founder and managing attorney Brian Levin at (855) 419-2412 or via email at contact@levinlawpa.com to schedule a free case evaluation.
What Is Coinbase?
Coinbase Global, Inc. (“Coinbase”) is a cryptocurrency exchange platform where customers can buy, sell, transfer, or store their cryptocurrency. The company was founded in 2012 and has grown to be one of the largest cryptocurrency exchanges in the world.
According to the platform’s website, it has over 3,500 employees worldwide and operates in over 100 countries. Additionally, Coinbase notes that there are $145 billion in quarterly volume traded and $130 billion in assets on the platform.
When Was Coinbase Hacked?
Coinbase has reportedly been hacked multiple times. Despite multiple security failures over the past few years, the crypto exchange platform continues to tout its safety and security features.
Previous Coinbase hacks:
- March and May 2021: A letter provided by the California Office of the Attorney General and reported on by Reuters notes that in March and May of 2021, at least 6,000 Coinbase customers had their accounts compromised. The letter explained that funds were removed from customer accounts by a third party who obtained unauthorized access. In addition to removing funds from customer accounts, hackers were able to access confidential information such as dates of birth, email addresses, IP addresses, transaction history, and more.
- May 2022: As noted by CoinDesk, A customer of the San Francisco-based company reportedly lost $96,000 through a SIM-Card hack. The customer is reportedly suing Coinbase for violating the Electronic Fund Transfer Act and the California Uniform Commercial Code.
- February 2023: Coinbase employees were reportedly targeted in an SMS phishing campaign. According to TechCrunch, the cybersecurity attack was likely perpetrated by well-known hackers “0ktapus.” 0ktapus allegedly targeted over 130 organizations in 2022. The unauthorized access allowed the hackers to view internal information, including employee contact data.
In some cases, Coinbase has refused to refund any of the money removed from customer accounts as a result of hacking. The crypto exchange is facing litigation by aggrieved customers.
Coinbase Compliance-Related Failures
As reported by FinTech Futures, Coinbase was ordered to pay a $50 million penalty by New York State’s Department of Financial Services for “significant” compliance failures. The regulatory agency found that a number of Coinbase’s internal systems were inadequate, making the crypto exchange vulnerable to “serious criminal conduct.” Coinbase was ordered to pay an additional $50 million into its compliance systems.
In January 2023, the company was fined $3.6 million by the Dutch central bank (DNB) for failing to register its services to customers in the Netherlands, according to Markets Insider. The fine came after Coinbase had failed to comply with the bank’s regulations or pay any supervisory fees.
The New Jersey Office of the Attorney General and the Division of Consumer Affairs issued a cease and desist order against Coinbase on June 6, 2023, for violation of Securities law. In addition, it assessed a $5 million penalty. The statement indicated that the penalty was imposed as a result of the crypto exchange platform engaging in the sale of unregistered securities.
Pursuing Legal Action Against Coinbase
While the cryptoeconomy is still in its infancy, exchanges must still comply with many state and federal securities laws. Failure to comply with these laws can result in civil penalties and cause preventable harm to consumers.
In many cases, compliance-related failures are at the root of data breaches and other security-related attacks. Therefore, if you were the victim of a Coinbase hacking incident, you might be able to take legal action.
It is imperative to discuss your case with a cryptocurrency lawsuit attorney who can help you understand your rights. A lawyer may be able to pursue a legal claim on your behalf in order to help recover your losses.
Contact Levin Law Today for a Free Case Evaluation
Over $150 Million Recovered, Including Millions for Victims of Cryptocurrency Hacks
If you sustained losses due to your Coinbase account being hacked, contact Levin Law at (855) 419-2412 to schedule a free case evaluation. Levin Law founder and managing attorney Brian Levin have helped to recover millions of dollars on behalf of defrauded investors. He is experienced in handling complex litigation nationwide.
Coinbase customers and employees are encouraged to contact our office or email attorney Brian Levin directly at contact@levinlawpa.com. Most cases are handled on a contingency fee basis, meaning that you do not pay Levin Law attorneys fees unless money is recovered on your behalf.
