The U.S. Department of Justice (DOJ) has launched a criminal investigation into a recent cyberattack on Coinbase, the largest cryptocurrency exchange in the United States. The breach, disclosed by Coinbase on May 15, 2025, involved hackers bribing overseas customer support agents to access sensitive customer data. The attackers demanded a $20 million ransom, which Coinbase refused to pay. Instead, the company offered a $20 million reward for information leading to the perpetrators’ arrest.
Details of the Breach
According to Coinbase’s Chief Legal Officer, Paul Grewal, the company is cooperating fully with U.S. and international law enforcement agencies. A source clarified that the DOJ’s investigation targets the criminal actors behind the breach, not Coinbase itself.
The compromised data includes names, addresses, email addresses, masked Social Security numbers, bank account identifiers, government ID images, and transaction histories. However, no passwords, private keys, or funds were accessed.
Coinbase estimates the financial impact of the breach to be between $180 million and $400 million, accounting for remediation efforts and customer reimbursements. The company has assured affected customers that they will be reimbursed for any losses resulting from the attack.
SEC Investigation into User Metrics
In a separate matter, the U.S. Securities and Exchange Commission (SEC) is investigating whether Coinbase inflated its user numbers in past filings and public statements. The probe focuses on the “verified user” metric, which Coinbase previously claimed included over 100 million users. Coinbase has since ceased reporting this metric and maintains that it now provides a more accurate measure—monthly transacting users.
Despite these challenges, Coinbase’s stock remains resilient. As of May 20, 2025, the stock is trading at $263.99, reflecting investor confidence in the company’s long-term prospects.
This incident underscores the ongoing cybersecurity challenges facing the cryptocurrency industry. As regulators and companies grapple with these issues, the need for robust security measures and transparent reporting becomes increasingly critical.
