Support Agents Allegedly Bribed, Millions Affected

In a lawsuit filed on May 16 in a New York federal court, plaintiff Paul Bender alleged that Coinbase failed to protect user data during a serious breach. The incident, which began on May 11, involved cybercriminals bribing support agents to gain access to internal systems.

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The stolen data included names, addresses, phone numbers, emails, the last four digits of Social Security numbers, bank details, driver’s licenses, passports, and account data like balances and transaction history. The attackers reportedly demanded a $20 million ransom, which Coinbase refused to pay.

At Least Six Lawsuits Allege Negligence, Delayed Response

Between May 15 and 16, at least six lawsuits were filed against Coinbase. Plaintiffs allege the exchange failed to maintain proper security measures, delayed informing users, and offered no meaningful steps to mitigate harm.

One California-based lawsuit demands Coinbase delete all sensitive data and hire independent auditors to evaluate its systems. Another suit added a claim of unjust enrichment, arguing that Coinbase underinvested in data security to boost profits.

In a filing with the U.S. Securities and Exchange Commission (SEC), Coinbase estimated potential reimbursement costs to range between $180 million and $400 million. The company has pledged to compensate users who were tricked into sending crypto due to phishing scams linked to the data breach.

Following the news, Coinbase (COIN) shares initially dropped 7% to $244, but recovered with a 9% gain, closing at $266 on May 16.

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The post Coinbase Faces Legal Firestorm After Massive Customer Data Breach appeared first on Coin Engineer.

In a report dated May 16, Benchmark Equity Research raised its price target for Coinbase stock from $252 to $301 — a 19% increase. COIN shares closed at $266.32 on Friday, up 7%. 

Analyst Mark Palmer stated that Coinbase’s inclusion in the S&P 500 was a major catalyst. Being added to the index has attracted passive fund investments, increasing buying pressure on the stock. 

“Passive funds will be required to buy COIN shares for index alignment, which puts upward pressure on the stock,” Palmer said. Coinbase is the first crypto company to enter the S&P 500, enhancing its market credibility. 

Coinbase Stock Remains Strong Despite Setbacks 

Last week, Coinbase faced two major challenges. The company revealed a cyberattack in which hackers stole user data and demanded $20 million in Bitcoin. CEO Brian Armstrong publicly rejected the demand via social media. Additionally, the company confirmed it is under investigation by the U.S. Securities and Exchange Commission (SEC). While these events could have concerned investors, the stock held strong. 

The resilience is driven by Coinbase’s growth initiatives. The company recently acquired crypto derivatives exchange Deribit, expanding its product offerings and global presence. In Q1, revenue increased by 24%. Moreover, its inclusion in the S&P 500 has attracted long-term institutional investors. Giant funds are now adding COIN shares to their portfolios. Its stablecoin partnership with Circle is also positively impacting revenues. 

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The post Coinbase Stock on the Rise: COIN Target Raised to $301!  appeared first on Coin Engineer.