TLDR
- Coinbase stock fell 4.36%, extending losses to eleven straight sessions.
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Nevada regulators sued Coinbase over unlicensed prediction markets.
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An insider breach exposed sensitive data of about thirty clients.
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Analysts expect lower earnings despite strong revenue growth forecasts.
Coinbase shares continued their steady decline as legal and security issues weighed on investor sentiment. The stock fell sharply on Tuesday, extending a long losing streak. Market participants are watching closely as the company approaches its next earnings report.
Coinbase Global Inc. closed down 4.36% at $179.66, marking its eleventh straight session of losses. The shares are now trading at their lowest level since April. The decline has pushed the stock well below its key moving averages.
Coinbase Nevada Lawsuit Targets Prediction Market Operations
Regulatory pressure intensified after the Nevada Gaming Control Board filed a civil enforcement action against Coinbase Financial Markets. The complaint alleges the company offered unlicensed wagers tied to sports events through its prediction markets. Regulators have requested a temporary restraining order and a preliminary injunction.
“The Board takes seriously its obligation to protect Nevada citizens,” said Mike Dreitzer of the Nevada Gaming Control Board. The lawsuit followed Coinbase’s recent announcement that it had expanded prediction markets nationwide through a partnership with Kalshi.
The move echoes similar state-level actions taken against Polymarket. A Nevada court recently blocked that platform from offering event-based contracts to residents. These cases raise questions about how state regulators interact with federal oversight of prediction markets.
Insider Breach Adds to Security Concerns
Coinbase also disclosed an insider-related security breach that affected roughly thirty clients. A contractor accessed sensitive customer data in December without authorization. Exposed information included names, contact details, birth dates, and Bitcoin wallet balances.
The individual involved is no longer employed by the company. Coinbase said affected users were notified and offered identity theft protection services. The incident followed another security issue in early 2025 linked to a third-party service provider.
While the breach did not involve the loss of funds, it added pressure at a time when trust remains critical. Security and compliance remain key factors for investors evaluating crypto exchanges.
Technical Weakness and Earnings Expectations
Coinbase’s technical picture remains weak. The stock has formed a “death cross,” with the 50-day moving average falling below the 200-day average. Relative strength indicators show continued underperformance compared with broader equity markets.
The stock’s weakness also mirrors declines in the broader crypto market. Bitcoin was trading near $80,000, well below its October peak. Coinbase’s revenue often tracks trading activity, which has slowed amid market uncertainty.
Looking ahead, analysts expect Coinbase to report earnings of $1.06 per share on revenue of $1.8 billion. While revenue is projected to rise sharply year over year, profits are expected to fall compared with last year. The earnings report is scheduled for February 12, and investors remain cautious as regulatory and security issues persist.
