Coinbase accused of losing $25 million and concealing $1 billion in hacks

BlockTower Capital founder Ari Paul publicly accused Coinbase of losing roughly $25 million of his firm's assets and concealing hacks totaling more than $1 billion across a dozen institutions. Coinbase denies the allegations, and Paul says active litigation prevents him from publishing evidence. The dispute highlights a broader industry problem: institutional holders cannot independently verify bitcoin custody, as traditional banking governance structures like named users, approval rules, and audit trails disappear when assets move onto a single exchange login or a private hardware wallet. Without transparent controls, questions about who can move assets and who approves movements remain unanswerable for boards and auditors.