Coinbase Faces $25 Million Loss Claim From Crypto Investor
BlockTower Capital, the cryptocurrency investment firm founded by Ari Paul, has accused Coinbase of losing approximately $25 million belonging to the fund several years ago and subsequently failing to reimburse the funds.
In a September 29 post, Paul said BlockTower was initially told that Coinbase had “lost” the money. However, a subsequent investigation led him to believe the incident was connected to a series of security breaches that Coinbase had not fully disclosed.
Paul alleged that BlockTower traced the incident and identified at least a dozen other organizations that may have been affected. He claimed the total losses potentially concealed from customers exceeded $1 billion. Paul provided few additional details, saying multiple legal proceedings related to the matter are still ongoing.
Coinbase Support later said it had privately contacted Paul to investigate the allegations. Coinbase has not publicly confirmed the $25 million loss or the claim that more than $1 billion in losses were concealed.
The allegations come amid a previously disclosed Coinbase security incident in 2025, when data belonging to at least 69,400 users was compromised after customer support personnel were bribed. However, that publicly disclosed incident does not establish the validity of Paul’s claims regarding the $25 million loss or the alleged $1 billion-plus in undisclosed losses.
Paul’s allegations have not been independently verified, and further details from Coinbase or related legal proceedings will be needed to establish what happened.
BlockTower Capital, the cryptocurrency investment firm founded by Ari Paul, has accused Coinbase of losing approximately $25 million belonging to the fund several years ago and subsequently failing to reimburse the funds.
In a September 29 post, Paul said BlockTower was initially told that Coinbase had “lost” the money. However, a subsequent investigation led him to believe the incident was connected to a series of security breaches that Coinbase had not fully disclosed.
Paul alleged that BlockTower traced the incident and identified at least a dozen other organizations that may have been affected. He claimed the total losses potentially concealed from customers exceeded $1 billion. Paul provided few additional details, saying multiple legal proceedings related to the matter are still ongoing.
Coinbase Support later said it had privately contacted Paul to investigate the allegations. Coinbase has not publicly confirmed the $25 million loss or the claim that more than $1 billion in losses were concealed.
The allegations come amid a previously disclosed Coinbase security incident in 2025, when data belonging to at least 69,400 users was compromised after customer support personnel were bribed. However, that publicly disclosed incident does not establish the validity of Paul’s claims regarding the $25 million loss or the alleged $1 billion-plus in undisclosed losses.
Paul’s allegations have not been independently verified, and further details from Coinbase or related legal proceedings will be needed to establish what happened.