Coinbase accused of hiding $1B in hack losses

4 Security

Sep 29, 2026

Ari Paul accuses Coinbase of hiding $1B in hack losses and not returning $25M to BlockTower. At least 12 firms were affected. Coinbase has not issued a detailed response.

Ari Paul, founder of BlockTower Capital, has accused Coinbase of concealing over $1 billion in losses from repeated hacker attacks and failing to return $25 million owed to BlockTower. Paul claims that at least 12 companies were affected by these incidents, which he alleges Coinbase deliberately hid. Due to ongoing legal proceedings, Paul states he cannot provide further details or evidence at this time. These serious allegations have sparked significant discussion within the crypto industry, raising concerns about transparency and security at leading exchanges. Coinbase has reached out to Paul for more information but has not issued a detailed public statement. The company acknowledged a separate 2025 data breach involving bribed support staff but denied any connection to Paul’s claims. No public evidence or court filings have been presented to support the $25 million loss or the larger $1 billion figure.