Coinbase security issues resurface as BlockTower claims $25M hack loss

What happened

Ari Paul, founder of the crypto investment firm BlockTower, said in an X post on September 29, 2026, that his company lost $25 million on Coinbase years ago because of hacks he claims Coinbase never disclosed.

Confirmed

Global impact / market context

If investors believe Coinbase hid past hacks, they may question how safe customer and firm assets are on the exchange, which could reduce trading activity, weaken trust in listed crypto assets, and raise the company's costs to keep users and defend itself.

Analyst inference

This claim resurfaces Coinbase security concerns while attention is already on the crypto exchange, so investors may pair it with existing worries about custody risk, meaning the safety of assets held by a third party, and adjust how much they are willing to hold there.

Analyst inference

What to watch

1. Watch whether Coinbase publicly responds to Ari Paul's X post claim that BlockTower lost $25 million years ago from hacks he says were never disclosed. Confirmed
2. Watch whether BlockTower or Coinbase provides more detail, such as dates, affected accounts, or hack methods, since concrete facts would let investors judge the claim rather than rely on a single post. Proposed
3. Watch whether crypto traders move assets off Coinbase or reduce exchange balances, because custody worry often shows up as withdrawals first and can pressure trading revenue and token prices. Analyst inference

Evidence

• en.cryptonomist.ch