Coinbase Lawsuit Alleges Lax Cybersecurity Enables Crypto Theft

Coinbase Inc. fails to protect users’ funds from unauthorized transfers, according to a new proposed class action in Georgia federal court by a man who alleges thousands of dollars worth of cryptocurrency were stolen from his account because of lax cybersecurity measures.

Coinbase’s user growth has outpaced its ability to provide the account services and protections it promises to consumers, George Kattula claims in a lawsuit filed Monday in the US District Court for the Northern District of Georgia.

In April, Kattula changed his password as requested by an email purporting to be from Coinbase, the suit alleges. After that, ...