Coinbase Data Breach Could Cost Company $400 Million

Coinbase has disclosed a major data breach caused by offshore support staff who were bribed by cyber criminals to hand over customer information. The incident, revealed in a May 15 SEC filing, could cost the company between $180 million and $400 million in reimbursements and remediation efforts.

The attackers obtained names, addresses, IDs, and account data, then demanded a $20 million ransom which CEO Brian Armstrong said the firm refused to pay. “I received a ransom note for $20 million in Bitcoin in exchange for these attackers not releasing some information,” Armstrong said in a company statement.

Coinbase fired the implicated staff immediately, reported the breach to global law enforcement, and launched a $20 million bounty for help in tracking the perpetrators. The breach followed weeks of social engineering scams that on-chain investigator ZachXBT claims led to $300 million in user losses.

The SEC is also investigating whether Coinbase exaggerated its user figures during its 2021 IPO, reviving scrutiny as the stock fell more than 6% to under $253. Coinbase said it stopped reporting “verified users” two years ago, calling the old metric outdated and promising to cooperate with regulators.

MetaMask Token Still Under Consideration According to Founder

MetaMask co-founder Dan Finlay said that a native token is still on the table, though nothing is confirmed. He stated that any future token announcement would appear only within the wallet to avoid phishing and misinformation. Regulatory shifts under the Trump administration may now give projects more legal flexibility when considering a launch.

Finlay emphasized that speculation alone is dangerous, as it creates opportunities for scammers targeting users through fake links and accounts. Earlier plans for a token called MASK aimed to support progressive decentralization, but the team has remained cautious. MetaMask currently serves over 30 million users and continues facing pressure from faster, more user-friendly competitors.

Senate Nears Agreement on Stablecoin Regulation Bill

U.S. lawmakers are reportedly “90% there” on the GENIUS Act, a stablecoin bill that could advance if party leaders agree on next steps. Remaining friction involves ethics provisions targeting high-profile figures like Elon Musk and concern over President Trump’s financial ties to crypto platforms. The bill outlines strict reserve requirements, audit mandates, and limits on foreign-based issuers.

Last week’s vote attempt collapsed when Democrats withheld support for cloture, citing unresolved gaps in consumer protection and issuer standards. A revised draft has circulated with tougher language on public company issuers, but critics say private firms remain a loophole. Negotiators may bring the bill back to the Senate floor as early as next week if key demands are met.

Sonic Labs Wins Court Order to Dissolve Multichain

Singapore’s High Court approved Sonic Labs’ petition to liquidate Multichain Foundation following its collapse after a $210 million hack. Sonic, previously Fantom Foundation, suffered around $70 million in losses and accused Multichain of fraud and contract violations. KPMG Singapore has been appointed to oversee asset recovery as joint liquidator.

Multichain’s CEO vanished after a 2023 arrest in China, and the team has not responded to any communication since. Sonic CEO Michael Kong said the liquidation became necessary after more than a year of silence and delay. The case could set an international precedent for legal resolution in decentralized finance exploits involving cross-border parties.

Data of the Day

Polymarket saw over 7,000 new prediction markets launched in April, breaking its all-time monthly record and continuing a growth trend that began late last year. This marked a 20.7% increase from March, even as the number of active traders dropped by more than 130,000 since January. Monthly betting volume has stabilized at just under $900 million, down from the year’s high.

Analysts believe fewer but more dedicated users are driving market creation, possibly in anticipation of a future airdrop or token launch. Popular new markets have focused on geopolitical tensions, elections, and major sports championships. While user engagement per market is thinning, Polymarket's expansion reflects shifting priorities toward niche forecasting opportunities.

More Breaking News

• France’s interior minister will meet with crypto leaders to address rising physical threats after a series of wrench attacks, including a failed kidnapping of a crypto CEO’s family.
• Telegram has shut down Haowang Guarantee, a major illicit crypto network, but investigators warn copycat platforms are already emerging to fill the void.
• eToro CEO Yoni Assia said Warren Buffett’s advice led the firm to de-emphasize crypto, though he remains bullish on the long-term potential of digital assets.
• Berachain co-founder Smokey the Bera says building a decorrelated user base will help stabilize DeFi and protect the chain from market reflexivity.
• FTX will begin distributing $5 billion to creditors on May 30 via BitGo and Kraken as part of the exchange’s bankruptcy reorganization.
• Ukraine is reportedly finalizing a bill to create a national Bitcoin reserve, potentially becoming the next country to officially hold BTC.
• China-based garment firm Addentax claims it’s in talks to buy $800M in crypto including TRUMP token, despite having a market cap under $5M.
• Ethereum’s EIP-7702 is off to a strong start with over 11,000 smart wallet authorizations one week after the Pectra upgrade went live.

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