- Coinbase faces DOJ probe over $400M data breach.
- Estimated financial losses are substantial.
- No crypto funds reportedly lost in the breach.
Coinbase Global is under investigation by the U.S. Department of Justice after a data breach, reportedly executed by external hackers and involving overseas support agents, compromised sensitive data. The breach surfaced in May 2025.
The event underscores the ongoing vulnerabilities in cryptocurrency exchanges and involves significant financial risk. Immediate market reactions remain muted, with user confidence being a potential concern for Coinbase.
Coinbase Global
The largest cryptocurrency exchange in the U.S., is at the center of a major Department of Justice investigation following a reported data breach. External threat actors and bribed overseas support agents facilitated the attack.
Leading the official response is Paul Grewal, Chief Legal Officer at Coinbase, who stated that Coinbase is collaborating with the DOJ in pursuing the hackers. No crypto funds, including private keys or login credentials, have been compromised.
“We have notified and are working with the DOJ and other law enforcement agencies and welcome their pursuit of criminal charges against these bad actors.” — Paul Grewal, Chief Legal Officer, Coinbase
Initial assessments suggest financial losses related to the breach range between $180 million and $400 million. Although hackers demanded $20 million, Coinbase declined, offering a reward instead.
Despite the breach exposing user data such as names, addresses, emails, and account balances, investor confidence in the integrity of cryptocurrency custodial security holds steady, with no impact on Ethereum or Bitcoin assets.
Drawing parallels to past events, such as the 2019 Binance data leak, the current situation presents similar financial and reputational risks. However, Coinbase has maintained asset reserve integrity, showing no on-chain asset loss.
The event surfaces amidst a backdrop of increased calls for regulatory oversight of cryptocurrency exchanges. The DOJ’s role indicates a tightening scrutiny, potentially leading to future compliance measures in the industry.
