BlockTower Capital founder Ari Paul publicly alleged that Coinbase “lost” roughly $25 million of his firm’s funds several years ago and that this loss is part of a broader, allegedly concealed pattern of hacks. Paul said his investigation traced the matter to at least a dozen affected companies and that the total concealed losses exceed $1 billion, but he also stated that multiple legal proceedings limit what he can disclose.
Coinbase’s customer support account replied to Paul on X, saying it had sent a direct message so the company could investigate, while no public statement or formal denial had been issued by the company as of the reports. Media coverage noted that independent verification for Paul’s figures and the alleged coordinated breach pattern had not been produced in open sources.
Reporting on the episode also referenced prior, documented incidents that provide context for security concerns. In May 2025 Coinbase disclosed a breach affecting at least 69,400 users in which attackers bribed support staff for internal access; the company says it turned down a $20 million ransom and that the attacker later converted tens of millions in stolen ETH into DAI. Other community disputes — including a September user claim of a $1.2 million loss, product-team checks that found no matching account, on-chain investigator ZachXBT’s work, and accusations involving Tiffany Milanovich — are part of the wider conversation. The sources emphasize that while these incidents inform the debate, Paul’s central allegation of a >$1 billion concealment remains tied to ongoing legal processes and unverified by independent evidence.