Coinbase Accused of Covering Up $1B in Hacks After Losing BlockTower's $25M
Ari Paul, founder of BlockTower Capital, has made explosive allegations against Coinbase. He claims that the exchange lost $25 million of his company's funds while covering up over $1 billion in hacks. According to Paul, at least a dozen firms were affected by the alleged cover-up.
In a tweet, Paul stated that Coinbase 'lost' $25 million of his firm's money two years ago and that it turned out they were actually covering up massive and repeated hacks. He also claimed that they still wouldn't return the funds.
The allegations come after Cobie, a prominent crypto investor, shared a series of posts about a user named Kuno who was trying to get $1.2 million back from Coinbase. Paul's tweet appears to be a response to Cobie's posts, and he hasn't yet responded to his own accusations.
BlockTower Capital is an investment firm founded in 2017 by Paul and Matthew Goetz, a former Goldman Sachs executive. The company has faced challenges in the past, including the departure of two executives in 2022 and 2023, as well as the shutdown of its $100 million Market-Neutral Fund in 2023.