Coinbase Accused of Hiding Massive Hack that Lost BlockTower $25M

Ari Paul, founder of BlockTower, has made serious allegations against Coinbase, claiming that his company lost $25 million on the crypto exchange due to a pattern of large-scale hacks that were allegedly covered up by Coinbase.

Paul stated in an X post on September 29, 2026, that he had found at least 12 other companies suffered similar losses, totaling over $1 billion. He claimed that ongoing lawsuits prevent him from revealing more details about the alleged hacks and losses.

This comes as Coinbase is already under scrutiny following a 2025 data breach where customer information was stolen. In that incident, some overseas customer support workers allegedly took bribes from criminals to access Coinbase's internal systems. The stolen data was used by scammers to contact users, pretending to be part of Coinbase's support team.

While Paul's allegations are serious, it is unclear whether the 2025 data breach led to his company's $25 million loss claim. Coinbase has already responded to the controversy, stating that passwords and private keys remained safe during the 2025 breach.