Inside the Coinbase hack: 1% of users hit, $400 mln liability looms

By: ambcrypto|2025/05/16 19:15:06
0
Share
copy
Coinbase assured the breach was limited, but the compensation cost could hit $400M. The SEC was reportedly investigating the exchange for misstated numbers in 2021. Crypto exchange Coinbase confirmed that a recent security breach affected about 1% of its customers, but assured user funds were safe and those affected would be compensated. In a statement , the firm blamed ‘rogue overseas support agents’ who collaborated with the alleged cyber criminals to access some user data. “Cyber criminals bribed and recruited a group of rogue overseas support agents to steal Coinbase customer data to facilitate social engineering attacks.” The criminals reportedly asked for a $20M ransom, but Coinbase declined and formed a $20M bounty hunt for the hackers instead. Coinbase: Stolen funds, SEC probe The threat actors accessed contact details including IDs, emails, and phone numbers. They also got account balance data, but didn’t access private keys, hot or cold wallets. Source: Coinbase The revelation comes after several complaints of hacks from Coinbase users since early 2025. In early May alone, renowned Web3 investigator ZachXBT flagged $45M stolen from the exchange. “Another $45M+ was stolen from Coinbase users via social engineering scams in just the last week. Interestingly, no other major exchange has the same problem.” ZachXBT stated that the stolen Coinbase funds were about 9 figures for the past four months. With the customer data, the criminals pretended to be exchange support and tricked them into releasing their crypto. However, the firm assured affected users that they would be refunded. “We will reimburse customers who were tricked into sending funds to the attacker due to social engineering attacks.” According to a disclosure filed by the SEC, the exchange liability from affected users could be around $180M-$400M. The crypto firm debuted on the S&P 500 Index this week, but the milestone has been marred by the hack and another SEC investigation. According to a New York Times report , the regulator was probing the exchange for falsifying user numbers (claimed 100 million verified users) during the 2021 IPO (initial public offering) preparation. Collectively, the updates dragged its share, COIN, down 7% on Thursday to $240, erasing some of the gains linked to S&P 500 Index inclusion and broader crypto stocks rally . Source: COIN, TradingView Share Share Tweet

You may also like

500% XAUT Staking, Zero-Fee Gold Futures and $100K Rewards: Why Traders Are Turning to WEEX for Tokenized Gold

Explore WEEX's $100,000+ gold campaign featuring 500% XAUT staking, zero-fee gold contracts, and $30,000 PAXG rewards. Trade tokenized gold today.

AI within artillery range

“The cloud” is a metaphor, but the data center isn’t.

March 4th Market Key Intelligence, How Much Did You Miss?

1. On-chain Flows: $39.6M USD inflow to Hyperliquid today; $29.7M USD outflow from Base 2. Largest Price Swings: $EDGE, $POWER 3. Top News: Altman defends Pentagon deal at all-hands, calls backlash "really painful"; OpenAI also seeking NATO contracts

Taking Stock of Crypto's Washington Power Players: Who is Advocating for US Crypto Regulation?

These institutions have jointly defined the industry's underlying values, marking the U.S. crypto industry's shift to a "professionalized, ecological, and refined" era of policy gamesmanship.

DDC Enterprise Limited Announces 2025 Unaudited Preliminary Financial Performance: Record Revenue Achieved, Bitcoin Treasury Grows to 2183 Coins

On March 4, 2026, DDC Enterprise Limited (NYSE American: DDC) today announced preliminary, unaudited full-year financial performance for the year ended December 31, 2025. The company expects to achieve record revenue and record positive adjusted EBITDA, primarily driven by continued growth in its core consumer food business and overall margin improvement. The final audited financial report is expected to be released in mid-April 2026.


2025 Full-Year Financial Highlights


Revenue: Expected to be between $39 million and $41 million, reaching a new company high.


Organic Growth: Excluding the impact of the company's strategic contraction of its U.S. operations, core revenue is expected to grow 11% to 17% year over year.


Gross Profit Margin: Expected to be between 28% and 30%, reflecting continued operational efficiency improvements.


Adjusted EBITDA: The company expects to achieve a positive full-year result in 2025, a significant improvement from a $3.5 million loss in 2024, mainly due to rigorous cost controls and a higher-margin sales mix.


Core Consumer Food Business Performance


In 2025, DDC's core consumer food business maintained strong operational performance.


The company also disclosed Core Consumer Food Business Adjusted EBITDA, a metric that further excludes costs related to its Bitcoin reserve strategy and non-cash fair value adjustments related to its Bitcoin holdings from adjusted EBITDA to more accurately reflect the core business performance.


In 2025, Core Consumer Food Business Adjusted EBITDA is expected to be between $5.5 million and $6 million.


Bitcoin Reserve Update


In the first half of 2025, DDC initiated a long-term Bitcoin accumulation strategy, holding Bitcoin as its primary reserve asset.


As of December 31, 2025: The company holds 1,183 BTC.


As of February 28, 2026: Holdings increased to 2,118 BTC


Today's additional purchase of 65 BTC brings the company's total holdings to 2,183 BTC


DDC Founder, Chairman, and CEO Norma Chu stated, "We are proud to have closed 2025 with record revenue and positive adjusted EBITDA, demonstrating the steady growth of the company's consumer food business and the ongoing improvement in profitability. We are building a disciplined, growth-oriented food platform and strategically allocating capital to Bitcoin assets with a long-term view, aligning with our core beliefs. We believe that this dual-track model of 'Steady Consumer Business + Strategic Bitcoin Reserve' will help DDC create lasting long-term value for shareholders."


Adjusted EBITDA Definition
For the full year 2025, the company defines "Adjusted EBITDA" (a non-GAAP financial measure) as: Net income / (loss) excluding the following items:· Interest expense· Taxes· Foreign exchange gains/losses· Long-lived asset impairment· Depreciation and amortization· Non-cash fair value changes related to financial instruments (including Bitcoin holdings)· Stock-based compensation


About DDC Enterprise Limited


DDC Enterprise Limited (NYSE: DDC) is actively implementing its corporate Bitcoin Treasury strategy while continuing to strengthen its position as a leading global Asian food platform.


The company has established Bitcoin as a core reserve asset and is executing a prudent, long-oriented accumulation strategy. While expanding its portfolio of food brands, DDC is gradually becoming one of the public company pioneers in integrating Bitcoin into its corporate financial architecture.


Uncovering YZi Labs 229 Investment: Over 18% of the portfolio is already inactive, with an average project transparency score of 78

In terms of strategic direction, YZi Labs has begun to extend into areas such as AI and stablecoins, but overall it is still in the layout and validation stage.

Popular coins

Latest Crypto News

Read more