Coinbase Faces Up to $400 Million Loss After Cyberattack: What Crypto Investors Need to Know Now!

May 15, 2025 — Coinbase, one of the world’s top crypto exchanges, has reported a major cyberattack. The company expects to lose between $180 million and $400 million due to the breach. The attack came just days before Coinbase is set to join the S&P 500 Index.

🔍 What Happened?

On May 11, Coinbase got an email from unknown hackers. The attackers said they had customer data and internal documents. They had bribed contractors and overseas employees to get this information.

Only less than 1% of customers were affected. Still, the hackers used the stolen data to pretend to be Coinbase. They tricked users into sending crypto funds.

Coinbase confirmed that no login credentials or passwords were stolen. Even so, the company will reimburse every victim who lost money.

“We will not pay the $20 million ransom,” Coinbase said. “Instead, we are offering a $20 million reward for tips that lead to arrests.”

📉 Stock Impact and SEC Investigation

After the news, Coinbase shares fell by 4.1%. This added to earlier losses, which came from a separate SEC review.

The Securities and Exchange Commission (SEC) is checking if Coinbase shared incorrect user numbers. The agency also wants to see if Coinbase follows proper know-your-customer (KYC) rules.

However, Coinbase says the investigation is based on an old reporting metric. The company stopped using it in 2022 and claims it followed all rules.

⚠️ Crypto Industry Faces Rising Threats

The Coinbase breach is not the only one this year. Earlier, Bybit lost $1.5 billion in a cyberattack. In total, crypto hacks in 2024 have cost $2.2 billion, according to Chainalysis.

“Cyber criminals are getting smarter,” said Nick Jones, founder of crypto firm Zumo. “The industry must act faster to stay ahead.”

🧑‍⚖️ Legal Action and Internal Fallout

Coinbase now faces a lawsuit in New York. The claim says the company failed to protect personal data.

In response, Coinbase has:

• Fired the employees who leaked data
• Opened a new U.S. support hub
• Warned users to watch out for scams

The company also reminded users:

“We will never ask for your password, 2FA code, or ask you to move funds.”

💰 Financial Impact

The company estimates losses between $180 million and $400 million. These include:

• Security fixes
• User refunds
• Legal costs

This number may change depending on how much Coinbase recovers or pays out in claims.

🔒 What Users Should Do

Coinbase users should stay alert. Here’s how to protect yourself:

• Turn on 2FA (two-factor authentication)
• Don’t click on strange links or emails
• Lock your account if anything seems off
• Never send funds to new wallet addresses without confirming

✅ Final Takeaway

This attack is a big warning for the crypto world. As the industry grows, so does the risk of cybercrime.

Coinbase says it is sorry for the fear and trouble this has caused. The company promises to improve security and help affected users.

For now, users must stay alert. Trust and safety are more important than ever in the fast-moving crypto world.