Coinbase Hacked: BlockTower Founder Claims $25 Million Loss
Coinbase is facing new scrutiny over its security issues after BlockTower's founder Ari Paul claimed his company lost $25 million on the exchange due to repeated hacks that Coinbase allegedly kept hidden.
Paul, whose claim centers around a loss attributed to a pattern of large, repeated hacks, has not shared evidence due to ongoing lawsuits. He estimates that at least 12 other companies suffered comparable losses on Coinbase, totaling over $1 billion in damages.
Coinbase has confirmed a separate 2025 data breach where bribed overseas support workers stole customer information used in impersonation scams. However, the company maintains that passwords and private keys were not compromised during this incident.
The timing of Paul's allegations coincides with Coinbase's expansion of its stablecoin payments partnership with Citi, which aims to provide bank-like functionality for businesses using blockchain-based payments.