Ari Paul alleges Coinbase lost $25M of BlockTower funds in a security cover-up

Ari Paul does not mince words. The founder and Chief Investment Officer of BlockTower Capital took to social media on September 28 to accuse Coinbase of losing roughly $25 million of his firm’s money, and then covering it up. The allegations, posted publicly, describe a pattern of security breaches affecting more than a dozen financial institutions, with total undisclosed losses Paul puts north of $1 billion. What Paul actually said Paul’s core accusation is that Coinbase lost approximately $25 million belonging to BlockTower Capital sometime in the past, concealed the incident, and that this loss is part of a broader coordinated pattern of hacks across institutional counterparties. The reason he could not go further, Paul explained, is that active legal proceedings are tied to the matter. As of September 29, no independent verification of these figures had emerged, and no credible third-party evidence had been published to corroborate the timeline or scope of the alleged breaches. Coinbase’s response, or the absence of one Coinbase’s customer support account reached out to Paul via direct message after the post went live. The company had not issued any public statement by Septembe...