Coinbase (COIN), Hacking Cover-up Allegations Exposed... "Hid $25 Million in Customer Losses"

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The largest virtual asset exchange in the United States, Coinbase (Coinbase Global, COIN), has been confronted with allegations that it lost $25 million in customer funds in the past. With suspicions also raised that it covered up hacking damage exceeding $1 billion, legal battles surrounding the exchange's security system and internal controls are intensifying.

According to CryptoPotato, a virtual asset specialized media outlet, on September 29 (local time), Ari Paul, founder of virtual asset investment firm BlockTower Capital, claimed that Coinbase lost $25 million of its own funds years ago. Paul pointed out that while Coinbase downplayed the fact that it lost funds, it actually tried to cover up a series of hacking incidents that affected other companies as well. Paul added that these claims are intertwined with multiple ongoing legal proceedings.

This revelation led to the shocking claim that Coinbase hid losses exceeding $1 billion. Paul escalated his criticism via social media, stating that Coinbase's security failures were not isolated incidents but led to large-scale fund outflows. The market believes that, as this is an official allegation from an institutional investor, the impact of the issue will be significant.

Coinbase immediately responded publicly, moving to quell the suspicions. The exchange stated that it contacted the investor via direct message (DM) and opened channels to investigate the facts. However, Product Lead Jordan Fish claimed that no account matching the relevant posts could be found, suggesting the possibility that it was a post designed to attract attention, leading to a stark disagreement between both sides.

The media pointed out that while past recorded security incidents could provide a backdrop for concerns about the exchange, they do not fully substantiate the claim that Coinbase systematically concealed losses exceeding $1 billion. It is analyzed that uncertainty regarding the veracity of both sides' claims will inevitably continue until the final outcome of the legal disputes mentioned by Paul is reached.

Coinbase, a Nasdaq-listed company that has positioned itself as a mainstream virtual asset infrastructure, has encountered a reef in the form of large-scale fund losses and allegations of hacking cover-ups. The market's attention is focused on whether the true nature of the $25 million dispute, which has escalated into a legal battle, can be clearly clarified.

[Article Key Summary]

-BlockTower Capital founder Ari Paul claimed that Coinbase lost $25 million in the past and covered up a series of hacks.

-Paul stated that the concealed losses exceeded $1 billion, but Coinbase refuted this claim and proposed an investigation.

-Amidst past security incidents, the claims of both sides have led to multiple legal proceedings, escalating the battle over the truth.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*