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Coinbase Faces New Lawsuit Following $400M Data Breach

by admin May 26, 2025

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Coinbase is facing a new class action lawsuit claiming that investors suffered significant losses over the years due to the crypto exchange’s “omissions,” which have affected the company’s stock price.

Coinbase Accused Of Key ‘Omissions’

Last week, a Coinbase investor filed a class action lawsuit in the US District Court for the Eastern District of Pennsylvania against Coinbase, CEO Brian Armstrong, and CFO Alesia Hass, alleging that the company’s shareholders have suffered “significant losses and damages” over the past four years.

In the May 22 complaint, investor Brady Nessler, on behalf of persons or entities who purchased or otherwise acquired publicly traded Coinbase securities between April 14, 2021, and May 14, 2025, claims that the exchange has a long list of “wrongful acts and omissions” that have led to the “precipitous decline in the market value of the Company’s common shares” affecting the Plaintiff and other Class members.

New lawsuit against crypto exchange Coinbase, Armstrong, and Hass. Source: CourtListener

Among the omissions, the lawsuit lists the company’s recent data breach and its failure to disclose that it breached its 2020 agreement with the UK’s Financial Conduct Authority (FCA).

In October 2020, the company’s UK subsidiary, Coinbase Payments (CBPL), signed a voluntary agreement to prevent onboarding clients considered “high risk” by the regulator and reduce potential criminal activity on the CBPL platform.

The lawsuit alleges that the company made several “materially false and misleading” statements at the time that omitted that Coinbase Payments, Ltd. (CBPL) had been found guilty by the UK regulator of having “inadequate anti-money laundering focused systems to prevent high-risk individuals from using its platform, and that CBPL then breached the Agreement designed to address those deficiencies, creating legal exposure.”

Notably, the price of the company’s common stock reportedly fell by $13.52 per share, a 5.52% decline, when a Reuters article titled “Coinbase UK unit fined for breaching financial crime requirements” was published during market hours on July 25, 2024. The FCA fined Coinbase’s UK subsidiary a $4.5 million penalty for breaching the voluntary agreement.

Data Breach Leads To Class Action Lawsuits

Moreover, the Class action suit argues that the recent data breaches also resulted in significant losses and damages for stockholders, highlighting the May 15 statement from the crypto exchange.

As reported by Bitcoinist, Brian Armstrong shared that threat actors bribed a handful of customer support contractors to access Coinbase’s internal tools, resulting in the breach of names, email addresses, limited transaction records, and partial Social Security numbers of 1% of the exchange’s users.

The hackers attempted to blackmail the exchange, demanding $20 million in Bitcoin (BTC) to return the sensitive customer data. However, Armstrong revealed they refused to pay the ransom.

The lawsuit states that, following the news, the price of Coinbase’s common stock fell by $19.85 per share, a 7.2% decline, to close at $244 on May 15, 2025. Since then, multiple lawsuits have been filed against the crypto exchange, and a US Department of Justice Investigation has been opened.

Based on this, Plaintiff seeks to “recover compensable damages caused by Defendants’ violations of the federal securities laws under the Securities Exchange Act of 1934 (the ‘Exchange Act’).”

Bitcoin trades at $109,638 in the one-week chart. Source: BTCUSDT on TradingView

Featured Image from Unsplash.com, Chart from TradingView.com

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

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May 26, 2025 0 comments

Product Reviews

Oracle has reportedly placed an order for $40 billion in Nvidia AI GPUs for a new OpenAI data center

by admin May 24, 2025

Oracle has reportedly purchased about 400,000 Nvidia GB200 AI chips, worth about $40 billion, for deployment in Abilene, Texas. According to the Financial Times, this site will be the first to host the U.S. Stargate project —a $500 billion investment in AI infrastructure by OpenAI, Oracle, SoftBank, and Abu Dhabi sovereign wealth fund MGX that President Trump announced earlier this year.

Upon completion, the site is estimated to deliver up to 1.2 gigawatts of computing power, making it one of the most powerful data centers in the world and competing against Elon Musk’s Colossus in Memphis, Tennessee.

The project’s ownership is a bit complicated, though. The Abilene site is owned by Cruso, an AI infrastructure company, and Blue Owl Capital, a U.S. investment firm. Both have poured over $15 billion into the site through debt and equity financing.

This tiny SSD lets you delete your data forever with one click, but can you trust yourself not to misuse it?

by admin May 24, 2025

TeamGroup P35S SSD can wipe your data permanently and irreversibly with a few clicks
Designed for spies, journalists, and execs, this SSD values secrecy over raw performance numbers
Accidental erasure is a real concern with hardware that erases data in two simple motions

In a tech landscape where external drives often blur into a sea of similar features and designs, TeamGroup’s new portable SSD takes a sharp detour into espionage territory.

The T-Create Expert P35S Destroyed Portable SSD introduces something previously unheard of in the mainstream consumer market: a one-click data destruction mechanism.

While the concept may sound like something pulled straight from a spy thriller, TeamGroup says the device is intended for professionals who handle sensitive or classified information.

A self-destruct SSD that promises true data erasure

This external SSD stands out thanks to its patented “physical chip destruction circuit.”

Unlike standard data wipes, this feature claims to electrically destroy the data stored on the drive, making it completely irretrievable.

Triggered by a two-step process TeamGroup calls an “anti-mistouch” system, users must both click and slide to activate the wipe.

It’s not exactly a big red button, but the dramatic undertone is part of the appeal.

The P35S, which weighs just 42 grams and measures 90 x 40 x 18 mm, offers 1,000MB/s transfer speeds via a USB 3.2 Gen 2 Type-C port.

This led to the bold “transfer 10GB in just 10 seconds – ready for anything” slogan on TeamGroup’s display at Computex 2025.

While it won’t top charts for the best SSD in terms of performance alone, it offers enough throughput for on-the-go file handling.

What’s most notable is the P35S’s target audience. TeamGroup references users such as journalists, corporate executives, and government officials, people who might need to dispose of confidential data instantly.

“Designed for end-users who carry highly confidential documents, the SSD prevents data breaches and ensures that personal and confidential information remains protected under all circumstances,” the company says.

There’s even a nod toward “defense use,” which, depending on your level of cynicism, could either suggest genuine intent or feel like a PR stretch, especially in light of recent high-profile data mishandling cases.

The SSD’s compact size and data wipe feature make it easy to picture in the hands of an undercover agent or whistleblower.

But in practical terms, it may also raise concerns about accidental erasure, especially for users prone to fidgeting. That’s one reason I’d love to test this device myself.

This isn’t likely to be a top choice for gamers or media creators, but for users who prioritize security over speed, it may offer real value.

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May 24, 2025 0 comments

U.S. oligarch Elon Musk during a cabinet meeting at the White House on March 24, 2025 in Washington, DC.

Product Reviews

Elon’s DOGE Is Reportedly Using Grok AI With Government Data

by admin May 24, 2025

Reuters reports that Elon Musk’s annoying chatbot, Grok, is now being used by the U.S. government. While the extent and nature of that usage is unclear, sources interviewed by the news outlet have expressed alarm at the implications of the chatbot’s access to government data.

Grok was launched by xAI, an AI company founded by Musk in 2023, and has since become integrated into Musk’s social media platform, X. The chatbot is known to summarize information in the most cringe-inducing manner possible, and was originally fashioned as an “anti-woke” antidote to ChatGPT and other more politically correct applications (though it’s turned out to be too woke for conservatives anyway).

Musk’s Department of Government Efficiency team is now using a customized version of Grok, with the apparent goal of sorting and analyzing tranches of data. The team may also be using the chatbot to prepare reports, sources told the outlet.

Aside from the very obvious data privacy concerns raised by Grok’s integration with government data, it appears that, once again, Musk is at the center of a conflict-of-interest violation. In fact, Reuters characterizes the promotion of Grok as a potentially criminal transgression of federal regulations. The outlet writes:

If Musk was directly involved in decisions to use Grok, it could violate a criminal conflict-of-interest statute which bars officials — including special government employees — from participating in matters that could benefit them financially, said Richard Painter, ethics counsel to former Republican President George W. Bush and a University of Minnesota professor. “This gives the appearance that DOGE is pressuring agencies to use software to enrich Musk and xAI, and not to the benefit of the American people,” said Painter. The statute is rarely prosecuted but can result in fines or jail time.

Yes, but how many times have we heard that one before? Elon has conflicts of interest up the wazoo. He is a walking conflict of interest, at this point. To my knowledge, he’s never seen the interior of a courtroom and, unless he gets caught with a dead body or something, it seems doubtful he ever will.

Ever since Musk helped Trump get re-elected with hundreds of millions from his own piggybank, he’s has been treating the U.S. government like his personal plaything to destroy. Everywhere you look, the billionaire appears to be benefiting from his work with the government, whether it’s the White House bullying tariffed countries to adopt services from the billionaire’s satellite internet company, Starlink, or a new report that shows the billionaire’s companies may have saved nearly $2.37 billion from federal fines and penalties that were active under Biden but have since been “neutralized” in the Trump era.

As far as DOGE’s mandate goes, the organization has been an unmitigated failure. It has barely saved a fraction of the money that Musk initially claimed that it would and, in the long term, the cuts are likely to cost Americans money, since many of them have been to important agencies that dispense key services to Americans.

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May 24, 2025 0 comments

GameFi Guides

UK wants more crypto user data just as trust in KYC takes new hit

by admin May 24, 2025

New U.K. rules could mean more data from crypto users, just as a recent leak shows how risky that can be.

Just as a major crypto platform admitted contractors leaked user info, the United Kingdom unveiled strict new rules requiring firms to collect and report detailed personal data on every crypto transaction.

Starting Jan. 1, 2026, crypto firms operating in the U.K. will be expected to keep tabs on just about everything — every customer, every transaction, every movement of crypto. It’s part of the U.K.’s effort to bring transparency — and accountability — to a space long accused of being a bit too shadowy for its own good.

HM Revenue and Customs dropped the news in a May 14 statement, saying crypto firms will need to collect the full name, home address, date of birth, and tax identification numbers of all individual users. Entities like companies, partnerships, and charities are also in the spotlight, with requirements for legal business names, addresses, and company registration numbers.

That includes every transaction, even those just moving crypto between wallets. The rules follow international standards but go further by applying them within the U.K., not just across borders. Firms will be expected to submit reports annually, and those that fall short could face fines of up to £300 (around $398) per user.

Protecting consumers

Authorities say the move is about protecting consumers and creating a more robust regulatory environment. But it’s also clearly aimed at closing tax loopholes and keeping pace with broader global standards, including the European MiCA regulation. As HMRC put it, firms should start preparing now — not in 2026 — to avoid a last-minute scramble.

Mark Aruliah, head of EMEA policy at blockchain analytics firm Elliptic, said in a commentary for crypto.news that the move is an “expected next step” for an industry maturing toward parity with traditional finance.

“Reporting of personal transaction data has historically been a challenge for the industry and for consumers. This clarity on legal obligations to reporting will help and also the growth of new reporting services.”

Mark Aruliah

While Aruliah acknowledged the potential burden on smaller startups, he said the push toward transparency was not only necessary but overdue.

“Any regulation is generally regarded as an additional cost burden to the industry but that has to be balanced against the benefits that it provides. Therefore, it may be that smaller firms are impacted disproportionately based purely on costs (i.e. due to their size and profits), but nevertheless, these obligations are an expected next step and simply look to match the general reporting obligations in the tradfi space.”

Mark Aruliah

But for many critics, the bigger question is not about collecting data. It’s about keeping it safe.

Great responsibility

That concern came into sharp focus as cryptocurrency exchange Coinbase recently confirmed a breach involving customer data. According to the U.S.-based crypto exchange, contractors working for Coinbase overseas were bribed by attackers who gained access to sensitive customer information.

That included names, emails, phone numbers, addresses, and in some cases, partial Social Security numbers. Some users have even reported that ID documents like passports and driver’s licenses were exposed.

Coinbase said the breach affected less than 1% of its user base, though with nearly 9 million monthly active users, even that sliver represents a significant population. Worse still, it’s exactly the kind of personal data the U.K. now wants firms to collect and verify — and the breach raises urgent questions about whether crypto companies are equipped to handle such responsibility.

While Coinbase claims its internal systems caught the breach quickly, blockchain investigator ZachXBT has said signs of trouble were visible much earlier. Back in February, he flagged a string of scams tied to Coinbase’s infrastructure, including one victim who lost $850,000 after being duped by a fake Coinbase support agent.

If the U.K.’s CARF-aligned rules were already in force, the firm could be staring down millions in fines, not to mention reputational damage that’s harder to quantify. Still, the juxtaposition is hard to ignore: the U.K. is telling crypto firms to hoard personal data, just as one of the world’s largest exchanges admits it failed to keep such data safe.

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May 24, 2025 0 comments

NFT Gaming

Satoshi-Era BTC on Move, On-chain Data Finds

by admin May 23, 2025

On-chain analytics platform Glassnode noted in a recent tweet that 15 years after Laszlo Hanyecz made history by spending 10,000 BTC (now worth $1.1 billion) on two pizzas, some of those early-era Bitcoins are still moving.

According to Glassnode, Bitcoin from the Satoshi era, which refers to the period when the Bitcoin creator was still active in the crypto space, is quietly shifting on-chain. These ancient wallets, which were formerly deemed dormant, have seen fresh activity in recent months.

Glassnode observed that the >10-year cohort’s share of Bitcoin’s Realized Cap has dropped from a peak of 0.045% to 0.033%. Notably, this decline accelerated between December and February and has picked up again since April 20.

15 years after Laszlo bought pizza for 10,000 $BTC – now worth over $1.1B – some of that era’s coins are still moving.

The >10y cohort’s share of #BTC‘s Realized Cap fell from peak 0.045% to 0.033%, with steep declines from Dec–Feb and again since Apr 20.#Bitcoin #PizzaDay pic.twitter.com/FoGbgG01Ba

— glassnode (@glassnode) May 22, 2025

The timing of the reawakening of these ancient coins in December to February as well as in April aligns with the rise in the price of Bitcoin. Bitcoin reached six figures for the first time in December, peaking in January at $109,114, following which the price fell.

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Bitcoin revived its uptrend from lows of $74,553 in April, with its recent surge casting the spotlight on early holders, including its mysterious creator Satoshi Nakamoto, whose net worth has recently pushed higher in the top global rankings.

Bitcoin reaches all all-time high on Pizza Day

Bitcoin hit a new all-time high of $111,903 on the 15th anniversary of Bitcoin Pizza Day.

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In 2010, Laszlo Hanyecz performed the first known commercial Bitcoin transaction, purchasing two pizzas for 10,000 BTC. The 10,000 BTC used for the pizza transaction are now worth over $1.1 billion, demonstrating the cryptocurrency’s extraordinary growth in value.

Bitcoin’s price climbed to fresh highs above $111,000, sparking unprecedented activity on the Deribit options market. Deribit’s open options contracts totaled a record $42.5 billion, showing elevated market interest.

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May 23, 2025 0 comments

Product Reviews

Fire Breaks Out at a Data Center Leased by Elon Musk’s X

by admin May 23, 2025

A fire broke out Thursday morning at a data center in Hillsboro, Oregon, leased by Elon Musk’s X, forcing an extended response from emergency crews, according to multiple sources who spoke to WIRED. The sources required anonymity as they aren’t authorized to speak publicly about the company.

Firefighters arrived at the Hillsboro Technology Park, in a suburb west of Portland, at 10:21 am, according to Hillsboro Fire and Rescue spokesperson Piseth Pich. They found a room with batteries that were deemed to be involved in the fire. Pich noted that the fire had not spread to other parts of the building, but said the room in question was heavy with smoke. As of 3:00 pm, the crew was still on the scene.

X did not immediately respond to a request for comment from WIRED. It could not be learned whether server operations at the data center had been affected by the incident.

Before Elon Musk bought Twitter, the company had three data centers in Sacramento, Portland, and Atlanta. This ensured that if one data center went down, traffic could be shifted to the other two—and split so no single data center was overwhelmed.

Around Christmas Eve 2022, Musk shut down X’s data center in Sacramento in an effort to cut costs. The company experienced a major outage in the wake of the shutdown. Over the next six months, the company moved more than 2,573 server racks from the Sacramento facility to data centers in Portland and Atlanta, according to internal documents.

In the Portland area, X appears to lease space from a building that has been linked to Digital Realty, one of the world’s largest developers of data centers. Digital Realty provides varying levels of operating support at its sites, which can have one or more tenants. It’s unclear if X shares this facility with other companies.

Ryan Young, vice president of Americas operations for Digital Realty, said in a statement to WIRED on Thursday evening that the “fire-related incident at our PDX11 facility” had been contained and that the fire department had left. “All personnel were safely evacuated, with no reported injuries,” Young stated. “We continue to monitor the situation, prioritizing the safety of our personnel, the integrity of the facility, and minimizing customer impact.”

Young declined to comment on customers.

Batteries often function as a backup power source at data centers. But lithium-ion varieties can be volatile, and issues with upkeep and inadequate safety measures have contributed to costly blazes at data centers around the world. Pich, the Hillsboro Fire Department spokesperson, says he could not recall any previous fire involving batteries in the Oregon region’s many other data centers.

X’s parent company, xAI, has taken criticism in recent months for its rapid expansion of power capacity at a new data center in Memphis, which opened last year. That facility, which Musk named Colossus, was built up at breakneck speed to train xAI’s Grok and other AI tools. The company installed more than 30 methane-powered gas turbines, but because the turbines are temporary, a federal permit for pollution control isn’t required, which appears to exploit a loophole in the Clean Air Act. The facility has drawn widespread criticism from surrounding Black and brown communities, who are already exposed to a large amount of air pollution and industrial emissions from other facilities in the area.

Update 5/22/25 11:03 ET: This story has been updated to include additional comment from Digital Realty.

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May 23, 2025 0 comments

Product Reviews

X is experiencing a data center outage

by admin May 23, 2025

If you had trouble using X today, you’re not alone. DownDetector reports that over 5,000 people have reported issues accessing the social media platform as of 4PM ET. X’s official Engineering account claims the issue is due to a data center outage.

“X is aware some of our users are experiencing performance issues on the platform today,” X’s Engineering account writes. “We are experiencing a data center outage and the team is actively working to remediate the issue.” The platform last experienced a major outage in March 2025. At the time, X CEO Elon Musk blamed the outage on a “massive cyberattack.” Security researchers who looked into the issue later said it was poor security on X’s part that left the company’s servers vulnerable to attack.

X is aware some of our users are experiencing performance issues on the platform today. We are experiencing a data center outage and the team is actively working to remediate the issue.

— Engineering (@XEng) May 22, 2025

Update, May 22, 6:30PM ET: Users are still reporting problems accessing X, though at a lesser rate than its peak of 3:40PM ET. The X Engineering report has not posted an update since its original tweet.

Update, May 22, 9:35PM ET: X is still experiencing site-wide outage. Wired has reported that a fire broke out at a data center leased by Elon Musk in Hillsboro, Oregon. It’s not quite clear if that has anything to do with the current outage.

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May 23, 2025 0 comments

NFT Gaming

No, Bitcoin Price Is Not Overheated Yet, Bullish Data Emerge On-chain

by admin May 21, 2025

The leading digital currency Bitcoin (BTC) has kept investors speculating since May 8, when it breached the $100,000 level. Many anticipated a bullish rally above its current all-time high (ATH) of $109,114, but this has yet to happen, leading some to believe that Bitcoin is overheated.

NVT golden cross signals market still in safe zone

However, per CryptoQuant insights, a Bitcoin on-chain metric, the Network Value to Transaction (NVT) has not signaled overheating yet.

According to CryptoQuant, Bitcoin NVT Golden Cross has reached 1.51 points, which is still some comfortable points away from the overheated zone of 2.2.

NVT Golden Cross Doesn’t Signal Overheating Yet

“Historically, readings above 2.2 have signaled the beginning of overheated conditions. While we’re not there yet, the rising trend deserves attention.” – By @burak_kesmeci pic.twitter.com/YaClQtHt6F

— CryptoQuant.com (@cryptoquant_com) May 21, 2025

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Notably, the NVT Golden Cross is a valuation tool that compares Bitcoin’s market capitalization to the network’s transaction volume. This comparison aims to show whether the asset is overvalued or undervalued in the short term.

Although it does not have a 100% accuracy rate, a value above 2.2 has historically marked periods when BTC is tagged overheated. Due to speculation, the asset is experiencing a price increase faster than real network usage.

The current value of 1.51 highlighted by CryptoQuant suggests that although the metric is climbing and investors should pay attention, it does not constitute a red flag yet.

However, traders might want to monitor the development closely to avoid being caught unawares while making speculative guesses.

Bitcoin investor appetite on rise

The update appears necessary as Bitcoin has seen a spike in investor interest on the crypto market.

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As reported by U.Today, Bitcoin Open Interest recently hit $74 billion as the price rallied, triggering renewed confidence among traders betting on the futures market.

Meanwhile, institutional interest has also increased, with Bitcoin exchange-traded funds (ETFs) recording impressive inflows. According to data, a total of $329.02 million of inflows were recorded on May 20, 2025, on the Bitcoin ETF market.

According to CoinMarketCap data, the Bitcoin price has increased by 1.59% to $106,654.59 in the last 24 hours.

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May 21, 2025 0 comments

GameFi Guides

Coinbase Data Breach Will ‘Lead to People Dying,’ TechCrunch Founder Says

by admin May 20, 2025

In brief

TechCrunch founder Michael Arrington has claimed that a recent data breach at Coinbase “will lead to people dying.”
Arrington’s claim comes amid a wave of kidnap attempts targeting high-net-worth crypto holders.
Former Coinbase CTO Balaji Srinivasan argued that the fault lies with state-mandated KYC data collection.

The founder of online news publication TechCrunch has claimed that Coinbase’s recent data breach “will lead to people dying,” amid a wave of kidnap attempts targeting high-net-worth crypto holders.

TechCrunch founder Michael Arrington added that this should be a point of reflection for regulators to re-think the importance of know-your-customer (KYC), a process that requires users to confirm their identity to a platform. He also called for prison time for executives that fail to “adequately protect” customer information.

I am a long time investor in and champion of @coinbase. Something that has to be said though – this hack – which includes home addresses and account balances – will lead to people dying. It probably has already. The human cost, denominated in misery, is much larger than the $400m… pic.twitter.com/ruSYKAGH7x

— Michael Arrington 🏴‍☠️ (@arrington) May 19, 2025

“This hack—which includes home addresses and account balances—will lead to people dying. It probably has already,” he tweeted. “The human cost, denominated in misery, is much larger than the $400 million or so they think it will actually cost the company to reimburse people.”

On Thursday, Coinbase announced that cybercriminals tried to blackmail the exchange into paying $20 million in Bitcoin over the stolen customer data—which it refused to pay. Instead, the company put out a $20 million award for any information that would lead to the “arrest and conviction” of the attackers. The crypto exchange has also pledged to reimburse any customers that were tricked into sending funds to the attackers.

The U.S. Justice Department has since opened a probe into the data breach, Bloomberg later reported.

But for Arrington, who also founded venture capital firm CrunchFund and hedge fund Arrington Capital, this isn’t enough. He believes that people are in immediate physical danger following the breach, which exposed data including names, addresses, phone numbers, emails, government-ID images, and more.

Arrington said that he was a “long time” investor in Coinbase but did not respond to Decrypt’s request for comment in what capacity this investment was made. Coinbase also did not respond to Decrypt’s request for comment.

Crypto kidnap attempts

A number of high-profile kidnapping attempts has heightened concerns over the safety of crypto owners with significant holdings.

In January, Ledger co-founder David Balland was abducted from his home in France alongside his wife. The pair were held captive for roughly 24 hours, with the kidnappers “mutilating” Balland’s hand as part of their ransom demand, before local law enforcement recovered the executive and his wife.

In March, popular streamer and OnlyFans personality Kaitlyn “Amouranth” Siragusa was the victim of a home invasion by three armed attackers who physically assaulted her while ordering her to transfer her Bitcoin to them. She managed to fire her gun, causing the attackers to flee the scene.

In May, the father of a crypto millionaire was rescued by French authorities after being held hostage for days—but not without having his finger severed by the kidnappers. A week later there was an attempted but failed kidnapping of a woman and her child, relatives of a leading figure in France’s crypto industry.

As a result of these and other incidents, an Amsterdam-based physical security firm told Bloomberg that it had noticed an uptick in clients with large crypto holdings, prior to the Coinbase breach.

The risks of KYC data

Arrington believes that in the wake of these attacks, crypto companies that handle user data need to be much more careful than they currently are.

“Combining these KYC laws with corporate profit maximization and lax laws on penalties for hacks like these means these issues will continue to happen,” he tweeted. “Both governments and corporations need to step up to stop this. As I said, the cost can only be measured in human suffering.”

I disagree the problem is execs. The problem is the state.

The state forces companies to collect KYC data that they do not want to collect. This issue is much bigger than crypto, and regulation is the actual thing to target.

With ZK, no need for KYC.https://t.co/kszGEy2tuZ

— Balaji (@balajis) May 20, 2025

Former Coinbase chief technology officer Balaji Srinivasan pushed back on Arrington’s position that executives should be punished, arguing that regulators are forcing KYC onto unwilling companies.

“When enough people die, the laws may change,” Arrington hit back.

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May 20, 2025 0 comments

Data

Coinbase Accused Of Key ‘Omissions’

Data Breach Leads To Class Action Lawsuits

A self-destruct SSD that promises true data erasure

You might also like

Protecting consumers

Great responsibility

Bitcoin reaches all all-time high on Pizza Day

NVT golden cross signals market still in safe zone

Bitcoin investor appetite on rise

In brief

Crypto kidnap attempts

The risks of KYC data

Daily Debrief Newsletter