Coinbase Data Breach and Stock Losses 

On May 15, company disclosed that some customer support representatives were bribed, granting access to internal systems. This incident led to the theft of personal information from approximately 97,000 users, including names, addresses, email addresses, bank details, and identification documents. The attackers demanded a $20 million ransom, which Coinbase rejected, instead offering a $20 million reward for the capture of the perpetrators. 

Following the breach announcement, Coinbase’s stock price fell 7.2% to $244. The next day, it rose 9% to $266 but closed at $263.10 on May 23 after a 3.23% drop. This volatility indicates significant investor losses. The lawsuit also names CEO Brian Armstrong and CFO Alesia Haas as defendants, with investors claiming crypto exchange misled them by not disclosing the breaches promptly. 

Regulatory Issues in the UK 

The lawsuit highlights that Coinbase was fined $4.5 million by the UK’s Financial Conduct Authority (FCA) in 2024 for violating a 2020 agreement by onboarding high-risk customers. Nessler alleges Coinbase failed to disclose this violation during its IPO, claiming it artificially inflated the stock price and misled investors. 

Additionally, the company faces other lawsuits, including one in Illinois over improper biometric data collection. The company has not yet issued an official statement on these cases, but these events continue to impact Coinbase’s credibility and market value. 

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Court Ruling and Legal Process On December 11, the Supreme Court issued a brief order, rejecting Nvidia’s appeal without providing a reason. This decision upheld the Ninth Circuit’s ruling, which reversed a lower court decision from March 2021 that had initially dismissed the case.

Nvidia was aiming to overturn the Ninth Circuit Court of Appeals ruling from August 2023, which revived a lawsuit filed by Nvidia shareholders in 2018. The lawsuit claims that Nvidia hid over $1 billion in GPU sales to crypto miners and that CEO Jensen Huang downplayed the volume of these sales.

A spokesperson for Nvidia told:  “We would have preferred a decision affirming the trial court’s dismissal of the case, but we are fully prepared to continue our defense. Consistent and predictable standards in securities litigation are essential to protecting shareholders and ensuring a strong economy, and we remain committed to supporting them.”

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

Shareholder Claims and Evidence The lawsuit argues that a significant portion of Nvidia’s GPU sales was driven by sales to crypto miners. It points to the decline in sales at the end of 2018, when the crypto market collapsed, causing Nvidia’s stock price to drop nearly 30% in just two days.

In October, the Department of Justice and the Securities and Exchange Commission (SEC) supported the case, stating that Nvidia’s argument was based on false information. The agencies highlighted the shareholders’ case, which includes evidence such as statements from former Nvidia executives and a Bank of Canada report alleging that Nvidia understated its cryptocurrency revenue by $1.35 billion.

Nvidia’s Previous SEC Payment In 2022, Nvidia paid $5.5 million to the SEC to settle charges related to its insufficient disclosure of the impact of crypto mining on its gaming business. The company neither admitted nor denied the SEC’s findings, but this payment raised concerns about Nvidia’s past transparency issues.

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The post Nvidia’s Crypto Mining Lawsuit Rekindled! appeared first on Coin Engineer.

S&P Dow Jones Indices said after the close of trading on Friday, May 3, that Marathon will replace heating and ventilation equipment maker Aaon in the index on May 8. The S&P SmallCap 600 tracks 600 U.S. companies with market capitalizations between $1 billion and $6.7 billion that have reported profits in both the most recent quarter and the past four quarters.

According to Google Finance, Marathon Digital (MARA) shares jumped about 18% to $20.67 on Monday, May 6.

The stock price is up 25.2% since Bitcoin’s halving. However, MARA is down 9.86% year-to-date and hit its 2024 high of $31.03 on February 28. Marathon is likely to be one of the more heavily weighted stocks in the index, given its $5.6 billion market cap and the S&P SmallCap 600’s use of a float-adjusted market capitalization weighting methodology.

The addition of Marathon to the index comes at a time when the company is scheduled to report its first-quarter earnings on May 9, with investment research firm Zacks expecting revenue to soar 280% year-over-year to $193.9 million and earnings per share of $0.02 – a 166.7% increase year-over-year. Shares of Marathon’s rival Bitcoin mining companies also performed well on May 6, with CleanSpark (CLSK) and TeraWulf (WULF) up about 8% and 10.7%, respectively.

The rally in Bitcoin mining stocks comes at a time when miner revenue has been hit by the halving. However, transaction fees have since started to rise, according to mempool.space data, and are currently trading between 0.2 BTC and 1 BTC for block 842,350.

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