Coinbase discloses full extent of customer data breach
Coinbase, the largest U.S. crypto exchange, confirmed that a data breach exposed the personal details of 69,461 customers. This revelation came through a mandatory filing with the Maine Attorney General’s Office.
Previously, Coinbase had estimated the leak impacted less than 1% of users. The new figure supports that claim but sheds light on the real scale of the breach.
CEO Brian Armstrong had already announced the incident publicly via X on May 15.
What data was exposed in the Coinbase breach?
According to Coinbase, the compromised information included customer names, email addresses, and physical addresses.
Sensitive credentials such as passwords, private keys, and user funds were reportedly unaffected. Still, the leak raised concerns over potential identity theft and phishing risks.
Armstrong said the hackers demanded $20 million in Bitcoin but were denied. Instead, Coinbase issued a $20 million bounty for information leading to the culprits.
Coinbase responds with credit protection and monitoring
To help mitigate the damage, Coinbase is offering all affected customers one year of free credit monitoring and identity protection services.
These include dark web monitoring, identity restoration, and a $1 million insurance reimbursement policy.
Roughly 217 Maine residents were impacted. The breach itself occurred on December 26, 2024, but was only discovered by Coinbase on May 11, 2025.
DOJ opens probe as SEC investigation continues
The U.S. Department of Justice has opened an investigation into the breach. It comes as Coinbase is already facing regulatory scrutiny from the SEC.
The SEC probe focuses on whether Coinbase overstated user numbers in earlier financial disclosures. Paul Grewal, the company’s chief legal officer, dismissed it as a “hold-over investigation.”
Together, these incidents pose reputational and legal risks for Coinbase at a time of increased institutional adoption.
Coinbase shares drop amid security concerns
The Coinbase stock (Nasdaq: COIN) was trading at $260.41 in pre-market hours, down 0.35% since the previous close.
While the dip is minor, ongoing news about security vulnerabilities and investigations could impact investor confidence.
Still, Coinbase has reassured customers and stakeholders that critical systems and assets remain secure.
Security challenges persist for crypto exchanges
The breach highlights the persistent challenges facing Coinbase and the wider crypto sector. Even as Coinbase gains recognition—such as its recent inclusion in the S&P 500—security remains a key vulnerability.
Social engineering and insider threats are rising in frequency, and Coinbase must continue evolving its security protocols to maintain trust.
With the DOJ involved, the outcome of this case may set new precedents for crypto data security and regulatory oversight.