BlockTower Capital founder alleges Coinbase lost $25M and covered up hacks affecting over a dozen firms totaling $1B in losses.
Security & Exploits ·
BlockTower Capital founder Ari Paul alleged on September 29 that Coinbase lost $25 million belonging to his firm and subsequently covered up a series of hacks affecting other companies. Paul stated his investigation traced the losses to at least a dozen other affected firms, with total losses exceeding $1 billion, though he indicated multiple legal proceedings remain ongoing and prevented him from disclosing further details at that time.
Coinbase support responded by offering to investigate Paul's claim through direct message. The allegation emerged amid broader security incidents at the exchange, including a May 2025 breach affecting at least 69,400 users where attackers bribed customer support staff, and previous support-impersonation schemes that resulted in documented thefts. However, these documented incidents do not establish whether Coinbase deliberately concealed losses or the full scope of Paul's claims.
Paul's allegation has not been independently verified, and Coinbase has not publicly addressed the substance of the $1 billion loss claim. The outcome of the legal proceedings Paul referenced remains unknown.