BlockTower Capital founder Ari Paul has accused Coinbase of losing $25 million of his company's funds while allegedly covering up over $1 billion in security breaches affecting at least a dozen firms.
Paul stated on social media that Coinbase "lost" the funds years ago, later revealed to involve "massive and repeated hacks." He indicated that Coinbase has not returned the money. Paul said legal processes currently underway limit what he can disclose publicly about the matter.
Background on BlockTower Capital
BlockTower Capital is a crypto and traditional asset investment firm founded in 2017 by Paul and Goldman Sachs executive Matthew Goetz. The firm shuttered its $100 million Market-Neutral Fund in 2023, and two executives departed in 2022 and 2023.
Related Coinbase Security Incident
Coinbase faced legal action in May over an alleged $55 million draining hack that occurred in August 2024. According to the lawsuit, a victim lost crypto after clicking a malicious link spoofing the DeFi management tool DefiSaver, which led him to unknowingly authorize a smart contract permission granting thieves control of his wallets. Coinbase has withheld a portion of the stolen funds, the victim claims.
Protos contacted Coinbase for comment but received no response at the time of publication.
