On May 26, 2025, according to The Block, the cryptocurrency trading platform Coinbase was subject to a class-action lawsuit by shareholders due to the recent decline in its share price. The following is the specific situation:
The reason for the lawsuit: Investor Brady Nessler filed a class-action lawsuit in the Eastern District Court of Pennsylvania, the United States, claiming that the shareholders of Coinbase “suffered significant losses and damages”. The lawsuit alleges that the trading platform failed to disclose in a timely manner a user data breach that occurred earlier this month and that it violated an agreement reached with the UK regulatory authority.
Data Breach: On May 15, 2025, Coinbase disclosed a data breach. Hackers stole the sensitive information of nearly 100,000 users by bribing overseas customer service staff and demanded a ransom of 20 million US dollars. After the incident was exposed, Coinbase’s share price plunged by 7.2% in a single day, with its market value evaporating by more than 5 billion US dollars. Nasdaq suspended its assessment process for inclusion in the S&P 500 index.
Coinbase estimates the company’s loss: Coinbase estimates that the cost of resolving this data breach and compensating affected customers could be between 180 million and 400 million US dollars.
The alleged “omission of information disclosure” : The lawsuit document lists a long list of so-called “omissions of information disclosure” that the company has committed over the past few years. For instance, the lawsuit claims that Coinbase failed to truthfully disclose that its British subsidiary CB Payments violated the agreement signed with the Financial Conduct Authority (FCA) of the United Kingdom in 2020.
The people involved: Coinbase’s CEO Brian Armstrong and chief Financial Officer Alessia Haas were also listed as defendants.
Scope of the lawsuit: This class action lawsuit aims to recover losses on behalf of investors who purchased Coinbase stocks between April 14, 2021 and May 14, 2025.
So far, Coinbase has not issued a public statement regarding this lawsuit.
Five pieces of materials
Synthetix and Derive call off $27 million merger proposal
In May 2025, synthetic asset platform Synthetix and crypto options platform Derive jointly cancelled a $27 million merger proposal. The following is the specific situation of this event:
The content of the merger proposal: Synthetix plans to acquire Derive through a token exchange. The proposed exchange ratio is 1 SNX token for 27 DRV tokens, with a total transaction value of approximately 27 million US dollars. According to the plan, Synthetix needs to issue an additional 29.3 million SNX tokens for this acquisition.
The reason for the cancellation of the proposal: The acquisition needed to be approved by voting from both communities, but the proposal was strongly opposed by the Derive community after its announcement. Members of the Derive community believe that Derive’s recent revenue has been higher than that of Synthetix. The valuation of 27 million US dollars underestimates the value of Derive, and the agreement lacks provisions to prevent Synthetix from diluting its equity by issuing additional tokens in the future. In addition, the three-month token lock-up period has also sparked dissatisfaction within the community. These factors collectively led to the proposal “failing to resonate”, and eventually both sides agreed to abandon the proposed acquisition on May 22.
Synthetix originally hoped to expand its product portfolio by vertically integrating Derive’s technology and products to compete with mainstream derivatives platforms such as Hyperliquid, Binance, dYdX and Deribit. However, due to the lack of broad support from the community, this plan failed to be realized.
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