Coinbase Faces Allegations of Covering Up Large-Scale Hacks

Coinbase is facing renewed scrutiny following claims by BlockTower Capital founder Ari Paul that the exchange allegedly concealed recurring hacks affecting over 1 billion dollars in assets across at least a dozen institutions. While Paul has not yet provided public evidence, the allegations have gained traction amid Coinbase's history of security incidents, including a 2021 SMS vulnerability and a 2025 data breach involving compromised customer service personnel. Coinbase has previously faced criticism for delayed disclosures and has relied on mandatory arbitration clauses in legal disputes with users regarding fraudulent transfers.