Coinbase Stock Rises Despite Trading Volume Drop to 2nd Place

On May 27, 2025, Coinbase Global (COIN) experienced a 1.23% increase in its stock price, despite a significant drop in trading volume to $19.57 billion, a 20.22% decrease from the previous day. This fluctuation comes amidst a series of events that have impacted investor confidence in the company.

On May 15, 2025, Coinbase disclosed a material cybersecurity incident, revealing that a threat actor had accessed the personal information of nearly 70,000 customers. The company reported that the breach involved unauthorized data accesses, with the threat actor allegedly obtaining data by paying contractors or employees to extract it from Coinbase's systems. The estimated remediation and customer reimbursement costs could reach $400 million, raising concerns about the adequacy of Coinbase's internal controls and disclosure processes.

Further scrutiny arose on May 18, 2025, when it was reported that rival exchanges Binance and Kraken had also been targeted by similar attacks but managed to fend them off without losing customer data. This revelation raised questions about the timeliness of Coinbase's disclosure and the effectiveness of its security measures. Security personnel at several rival exchanges had been aware of hackers targeting large Coinbase holders as early as December 2024, and at least one exchange had notified Coinbase's security team through Telegram multiple times.

In response to these events, Hagens Berman has opened an investigation into possible securities law violations, urging Coinbase investors who suffered substantial losses to submit their claims. The firm is also encouraging persons with knowledge who may be able to assist in the investigation to contact its attorneys. The investigation focuses on the propriety of Coinbase’s repeated claims regarding its security measures and controls, as well as the adequacy of its cybersecurity risk management processes.