BlockTower founder alleges Coinbase concealed over $1B in hacking losses

Ari Paul, founder of blockchain investment firm BlockTower Capital, said on X today that Coinbase concealed past hacking losses worth hundreds of millions of dollars and did not return client funds. Paul said Coinbase had written off $25 million of BlockTower’s funds several years ago, but an investigation later led Paul to conclude the move was intended to cover up repeated large-scale hacking incidents. Paul added that tracing efforts identified at least 12 affected companies and that the total concealed losses exceeded $1 billion. Paul also said multiple legal cases are currently underway and that Paul could not disclose further details.