Coinbase is facing multiple lawsuits following a reported data breach, with users accusing the exchange of failing to implement adequate security measures. Between May 15 and 16, at least six lawsuits were filed, highlighting that Coinbase's security protocols were insufficient to safeguard user data. The breach compromised sensitive information such as names, addresses, and parts of Social Security numbers after several customer support agents were bribed to access internal systems. Plaintiffs, including one named Paul Bender, alleged that Coinbase’s response to the breach was fragmented and inadequate, failing to provide timely information or protective measures to affected individuals. Some lawsuits have called for damages and actions to enhance data security, while others demanded the purge of sensitive data and third-party audits. Coinbase has stated it declined a $20 million ransom associated with the breach and expects significant reimbursement expenses for affected users.

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