Coinbase Misled Investors on Anti-Laundering Controls, Suit Says

Coinbase Global Inc.'s risk disclosures omitted that one of its units had entered into, and breached, an agreement with British regulators to follow anti-money laundering and anti-terrorism requirements, an investor alleges.

Coinbase’s stock declined after the U.K.'s Financial Conduct Authority announced July 24 that CB Payments Ltd. enrolled or provided services to thousands of high-risk customers and would pay a fine, named plaintiff Erik Castle says. He filed his proposed class action for securities fraud Friday in the US District Court for the Eastern District of Pennsylvania.

Coinbase provided numerous disclosures, starting with its initial public offering prospectus in 2021, ...