BlockTower Capital alleges Coinbase lost $25M of their assets via covered-up hacks and refused restitution; over $1B allegedly concealed across multiple incidents with ongoing legal proceedings.
Security & Exploits ·
BlockTower Capital asserts that Coinbase concealed security breaches that resulted in the loss of $25 million in assets belonging the firm around 2024, and has refused to return the funds despite BlockTower's repeated requests. According to the firm's leadership, investigation traced similar incidents to at least a dozen other affected firms, with over $1 billion in total losses allegedly covered up across multiple instances.
The dispute remains unresolved as multiple legal proceedings are ongoing. BlockTower stated it cannot provide further details at this time due to the active litigation. Coinbase Support responded to the public allegations by offering to investigate the matter directly with the affected party, though no resolution has been disclosed.
What remains unclear is the specific nature and timeline of the alleged hacks, the extent of Coinbase's knowledge or involvement in covering them up, the identities of the other affected firms, and the current status or expected outcomes of the legal processes.