Coinbase was affected with a flood by complaints after it was recently disclosed that his user data was violated, with users accuse the crypto exchange of abuse of the incident.
At least six lawsuits were submitted against Coinbase between May 15 and May 16, which indicated that the exchange didn’t keep a strict safety protocol for the protection of user data, and the information injuries after consequences.
In one in every of the lawsuits submitted in front of a federal court in New York on May 16, the plaintiff Paul Bender argued that Coinbase couldn’t protect the sensitive personal data of thousands and thousands of users through the data injury.
Users sue coinbase and claim that the exchange doesn’t protect their sensitive data. Source: pacer
On May 15, Coinbase reported that it had been hit 4 days earlier with an in depth attempt of 20 million US dollars after cyber criminal several of its customers Support agents to access internal systems and steal a limited amount of user account data.
The stolen data included names, addresses, telephone numbers, e -mails, the last 4 digits of social security numbers, some checking account recognitions, driver's licenses, passports and a few account details corresponding to Saldo snapshots and transaction course.
Bender claimed that “Coinbase didn’t implement and maintain any adequate security protection security security”, which exposed to users “serious and ongoing risks”.
The lawsuit also claimed that Coinbase's response to the incident was “insufficient, fragmented and delayed”.
“The users weren’t immediately or completely informed in regards to the compromise, and Coinbase didn’t immediately take meaningful measures to mitigate further damage, offer identity protection services or offer the themes that may be implemented,” said the grievance.
In the lawsuit it was claimed that users might be exposed to “significant, immediate and protracted danger of identity theft and finance fraud” and that the results of the violation might be in the long run or “potentially everlasting”, for the reason that compromised information can’t be secured or ensured after the readings.
Flood of lawsuits arise similar allegations
Two other lawsuits submitted to a federal court in New York entered similar claims against Coinbase, while a fourth lawsuit accepted the claim of an unjustified enrichment, and argued that Coinbase didn’t spend enough for data security measures.
All 4 complaints require compensation and other measures to guard the plaintiff's sensitive data.
In a fifth lawsuit, which was submitted to a California Federal Supreme Court on May 15, the court asked similar claims to Coinbase, but asked the court to order coinbase, delete all of the sensitive data that she stops and set the safety auditors of third -party providers to check their security systems.
A coinbase spokesman didn’t comment on the complaints and as an alternative pointed CoinTelegraph to a blog post that he shared the information injuries.
Coinbase said that it refused to pay the 20 million dollar -proceedings and reported plans to reimburse users to send crypto to phishing fraudsters resulting from the information injury.
In a submission to the US Securities and Exchange Commission, the stock exchange expects the reimbursement costs of $ 180 million and $ 400 million.
According to reports, the exchange also released a bunch of customer support members based in India after they were allegedly involved within the social engineering attack on users.
Coinbase's shares fell 7% and fell to $ 244 after it had disclosed the information injury along with a current SEC probe via incorrect user numbers in 2021.
Since then, the share has achieved a comeback, achieved 9% and, based on Google Finance, on May 16 on May 16, 266 US dollars.
