Coinbase Accused of Hiding Institutional Fund Losses Exceeding $1 Billion

Ari Paul, founder and chief investment officer of BlockTower Capital, made serious allegations against Coinbase on September 28. He claimed that the exchange lost approximately $25 million in funds belonging to his firm and concealed the incident.

Paul also alleged that security breaches affecting more than a dozen financial institutions resulted in combined hidden losses exceeding $1 billion. He cited active legal proceedings as the reason he couldn't provide further details.

After Paul's post, Coinbase's customer-support account contacted him by direct message, but the exchange had not issued a public statement as of September 29. This raises questions about how institutional funds held through crypto exchanges are handled and disclosed.