The scam exploited a fake website and a very convincing story to trick Suman into revealing his hardware wallet’s seed phrase. Additionally, Coinbase is grappling with a major data breach that allegedly involved bribed customer service agents in India. The breach compromised sensitive user data, including that of Sequoia Capital partner Roelof Botha. This raised serious alarms about the potential compromise of other partners at Sequoia Capital, which is one of the world’s most influential venture firms. The attackers reportedly demanded $20 million in hush money. In France, authorities are responding to the spike in crypto-related kidnappings by offering enhanced police protection to crypto executives. The incidents are part of the escalating physical and digital threats targeting crypto holders around the globe. Scammers Pose as Coinbase Staff Retired artist Ed Suman, 67, reportedly lost more than $2 million in cryptocurrency after falling victim to a sophisticated scam that involved imposters claiming to be Coinbase support staff. A Bloomberg report published on May 17 revealed that Suman turned to crypto investing after retiring from a decades-long career in the art world. With a portfolio that included 17.5 Bitcoin (BTC) and 225 Ethereum (ETH), Suman stored his assets securely in a Trezor Model One hardware wallet, which is considered one of the safest options for safeguarding digital currencies offline. However, the security of that setup was upended in March when Suman received a text message warning him of alleged unauthorized access to his Coinbase account. Trezor Model One What followed was a very carefully orchestrated social engineering attack . A man who introduced himself as Brett Miller from Coinbase’s security team called Suman shortly after the message and had an uncanny familiarity with Suman’s setup, including the fact that his crypto was stored on a hardware wallet. The caller appeared highly credible, and convinced Suman that despite the wallet's offline nature, his funds could still be at risk. He then guided Suman through a so-called “security procedure” that required entering his wallet’s seed phrase into a spoofed website that is designed to imitate Coinbase. Just over a week later, another person claiming to be from Coinbase contacted Suman and repeated the security walkthrough. By the time the call ended, Suman’s life savings in crypto were completely drained. The incident has coincided with news of a major data breach at Coinbase. The breach was reportedly carried out by bribing customer service agents in India, and resulted in hackers accessing sensitive user information including names, account balances, and transaction histories. Coinbase Data Breach Hit Top VC The recent data breach at Coinbase reportedly impacted one of the most well known figures in venture capital, which raised new concerns about the depth and seriousness of the incident. According to a May 16 report by Bloomberg, Sequoia Capital Managing Partner Roelof Botha had personal data compromised after the cybercriminals got unauthorized access to Coinbase user information. (Source: Sequoia Capital ) Although Botha has not publicly revealed his net worth, estimates suggest he controls hundreds of millions of dollars in assets. The breach not only affected him but raised serious alarms about the potential compromise of other partners at Sequoia Capital, which is one of the world’s most influential venture firms with deep investments in the tech and crypto sectors. The attackers reportedly tried to extort Coinbase for $20 million in exchange for withholding the data breach from the public, an offer the company declined. Coinbase addressed the incident in a May 15 blog post , and confirmed that a subset of users fell victim to social engineering attacks after their personal account details were accessed. The company stated that the breach stemmed from customer service contractors based in India who were subsequently fired. In a filing with the US Securities and Exchange Commission (SEC), Coinbase estimated it may have to spend between $180 million and $400 million on reimbursement and remediation for the affected users. The situation may also extend beyond Coinbase. Another Bloomberg report indicated that similar social engineering attacks were attempted against users on other major platforms, including Kraken and Binance. In the midst of the data breach, Coinbase CEO Brian Armstrong was in Washington, DC, pushing for crypto legislation that is currently under review in Congress. There is a Senate vote on a stablecoin bill expected soon and the House is evaluating a new digital asset market structure framework. Coinbase stock price over the past 24 hours (Source: Google ) Meanwhile, Coinbase’s stock fell over 7% after the breach was reported, though it has since rebounded. France Acts After Crypto-Related Kidnappings Coinbase users are not the only people in the crypto industry who are being specifically targeted by criminals. France is taking urgent steps to improve the safety of crypto entrepreneurs and their families after a surge in kidnapping attempts linked to the crypto sector. A May 16 report from Politico revealed that France’s Interior Minister, Bruno Retailleau, announced a suite of enhanced protective measures in response to the growing threat. These include priority access to police emergency lines, specialized home security evaluations, and direct safety briefings from law enforcement officials that are aimed at helping crypto professionals adopt stronger personal protection strategies. These changes were made after three alarming incidents over the past few months. Most recently, on May 13, attackers tried to abduct the daughter and grandson of Pierre Noizat, the CEO of French crypto platform Paymium. The attack took place in broad daylight, and local authorities reported that Noizat’s daughter heroically disarmed one of the attackers by seizing and discarding a weapon before managing to escape. Just ten days earlier, on May 3, police in Paris rescued the father of a crypto entrepreneur who was kidnapped and held for ransom in a €7 million ($7.8 million) extortion scheme. And in January, David Balland, co-founder of crypto hardware wallet company Ledger, was abducted from his home in central France. He was held overnight before being freed the next evening. Retailleau believes these cases may be interconnected and pledged to respond with both immediate and long-term countermeasures. This includes specialized training for law enforcement in combating crypto asset laundering, as well as engagement with the crypto industry to build tailored security protocols. Since 2014, there have been more than 150 reported cases of crypto-related robberies or kidnappings globally, with at least 23 occurring in 2025 alone. This is according to a database that is kept up to date by Bitcoin advocate Jameson Lopp . Many of these incidents are believed to stem from criminals tracking victims via public events, social media, or overt displays of wealth. Lopp warned against peer-to-peer trades with unknown individuals, showing off crypto wealth online, and wearing crypto-branded merchandise that might draw attention.
Despite exciting milestones, Solana’s latest quarter showcases a dual narrative of growth and challenges within the crypto ecosystem. As applications thrive, the declining DeFi TVL raises questions about investor confidence
The crypto market is in high gear this May, with high-net-worth traders zoning in on high-conviction plays showing long-term promise and short-term momentum. Bitcoin (BTC) is holding strong near $103,800 as institutional inflows pick up pace. Solana (SOL) has surged 82% from its April low, while XRP just tapped a new 10-week high on confirmation of Ripple’s upcoming stablecoin launch. But the real story? A lesser-known altcoin is pulling attention from the 1% crypto elite — MAGACOIN FINANCE . This early-stage token is gaining traction at an accelerated pace, with analysts flagging it as one of the most aggressive plays of the current cycle. CLICK HERE – FINAL CHANCE BEFORE PRICE JUMPS 35x Why MAGACOIN FINANCE Is Gaining Ground in Crypto Circles Within 48 hours of launch, MAGACOIN FINANCE began trending across analyst chats, retail forums, and private Telegram groups. Its success isn’t just due to hype — this project combines politically charged branding with strategic tokenomics and calculated market timing. There’s a clear hunger from top-tier traders for early projects with asymmetric upside, and MAGACOIN FINANCE checks every box. The project’s capped token supply, rapid user onboarding, and narrative-driven model are giving it powerful momentum. The most sophisticated investors understand what comes next: listings, media exposure, and a likely price discovery event that early entrants want front-row access to. For elite investors who missed early entries on coins like Shiba Inu or Pepe, this is being viewed as a second shot — with tighter structure and stronger planning. Bitcoin Stays Bullish Above $103K as ETF Flows Rise Bitcoin (BTC) is sitting at $103,800 , showing firm support and low volatility — a sign institutions are accumulating. BlackRock’s spot ETF hit another weekly inflow record, and new custody partnerships are rolling out globally. Technical analysts are calling for a move toward $120K by July if this level holds. Solana Jumps 82% — Visa & Meme Coin Fuel Combined Rally Solana (SOL) is currently at $170.90 , up 82% from April lows. Its breakout has been fueled by a dual surge: Visa’s stablecoin expansion and booming meme coin activity on its chain. TVL across Solana-based protocols has jumped over 25% in May alone — drawing whales back into the mix. XRP Hits $2.38 as Stablecoin Plans Drive New Momentum XRP has jumped to $2.38 , hitting its highest level in over two months. Ripple confirmed a Q3 rollout of its own stablecoin pegged to the U.S. dollar — a major move that could reset XRP’s role in institutional settlements. Volume is up over 47% week-over-week, signaling strong buy-side pressure. Injective Rallies to $12.40 on AI Trading Integration Injective (INJ) is trading at $12.40 , up 14% over the past 72 hours. The surge follows the official launch of INJ’s AI-enhanced trading interface — now supported by several algorithmic hedge funds in Asia. Analysts are calling it a “sleeper protocol” for smart money in Q2 2025. CLICK HERE – ONLY 0.007 AWAY FROM LIFTOFF Final Thoughts While Bitcoin , Solana , XRP , and Injective are all delivering strong fundamentals and breakout action this May, MAGACOIN FINANCE stands apart as the one altcoin still in its early entry phase. The pace of adoption, strategic positioning, and mounting trader interest are giving this project the kind of momentum rarely seen twice in one cycle. To learn more about MAGACOIN FINANCE, please visit: Website: https://magacoinfinance.com Twitter/X: https://x.com/magacoinfinance Continue Reading: Solana and XRP Are Exploding — But MAGACOIN FINANCE, Paired With Bitcoin, Is the One Breaking Out
BTC shows strength while ETH weakens - setting up a clear battle for control.
An Australian man from Queensland has lost nearly 25 Bitcoin, a waterfront mansion and a Mercedes‑Benz after federal police said the assets may be tied to crime. Based on reports from May 18, the Criminal Assets Confiscation Taskforce moved in to seize the coins and property worth 4.5 million Australian dollars, about $2.88 million US dollars. He faces no new criminal charges over the Bitcoin, but a court order cleared the way for civil forfeiture. Evidence From Luxembourg Points Police North According to the AFP, the inquiry began in September 2018. That’s when authorities in Luxembourg flagged odd Bitcoin transfers. Investigators traced those movements back to the Queensland man – Shane Stephen Duffy – who pleaded guilty in 2016 for selling League of Legends player data. It wasn’t a direct hacking charge from the 2011 Riot Games breach. Rather, he bought a copy of personal data online and sold it on. Police also believe he’s tied to 950 Bitcoin stolen in 2013 from a French crypto exchange. Civil Powers Used To Seize Bitcoin, Assets Based on reports, the AFP tapped special powers under the Proceeds of Crime Act. They can “restrain and forfeit” assets if they can’t be shown to come from honest work. That means no jail time is needed before the agency moves in. Critics worry this lets authorities take property without a full criminal trial. Supporters say it stops funds being used for more crime and puts money back into community projects. Money To Go Toward Crime Prevention According to the AFP statement, proceeds from the sale of the Bitcoin , house and car will feed a special fund. That fund underwrites crime‑prevention programs and law enforcement efforts. Since July 2019, the taskforce has frozen over $1.2 billion in assets. That list includes homes, yachts, fine art and other crypto holdings. The idea is to turn criminal gains into community benefit. Record Tracks Raise Questions Over Privacy Investigators lean on public blockchain data to trace coins. But anyone holding Bitcoin mixed with “tainted” funds may face a fight to prove their innocence. Tracking each transaction or UTXO can be a heavy lift for everyday users. Some fear this trend could sweep up bystanders who unknowingly hold coins once linked to illicit deals. Community Reaction Mixes Relief And Concern Local reports show mixed feelings. Some residents feel safer knowing high‑value criminal gains can’t slip through the cracks. Others worry about the rights of innocents and the burden of proof. They ask whether civil courts can match the strict standards of criminal trials. As crypto grows more popular, cases like this will test how far authorities can go to reclaim suspect wealth. Featured image from Gemini Imagen, chart from TradingView
Summary Coinbase's S&P 500 inclusion is a massive liquidity event, driving momentum and attracting institutional investors, making it a unique, premium crypto investment. Regulatory progress like the STABLE Act and USDC growth, plus the Deribit acquisition, position Coinbase for long-term success as crypto adoption accelerates. Despite cybersecurity incidents, Coinbase's proactive response and industry-leading transparency reinforce its resilience and investor confidence. Valuation remains challenging, but with rising custody assets and momentum, I see Coinbase reaching a $100B market cap and $400/share by 2027. Decoding Crypto with Coinbase When I first wrote about Coinbase ( COIN ) last October , I naively maintained a ‘hold’ position given the market premium. Coinbase is the only pure-play crypto stock, so naturally investors will buy Coinbase because no other alternative is available in the public markets. Of course, the greatest uncertainty in October 2024 was the U.S. Presidential Election. But since President Trump, we have witnessed crypto achieve even more demand from the capital markets. Looking backwards, I wrote about Coinbase when it achieved a near-time low. Now the Trump Administration has loosened its grip on crypto and deregulated so much of the market, making Coinbase a prime beneficiary. Today, I will cover some of the key updates for Coinbase investors, which includes advancing trading, scaling stablecoins, and security updates. Coinbase is unusual in that it cannot be compared to the traditional financial services firm. The company generates revenue from multiple sources, and its core asset class (crypto) is very volatile. So if you don’t invest in crypto or enjoy volatility, I recommend investing with caution. To begin, I recommend reading Coinbase’s shareholder letter . I’ve always enjoyed this snapshot they provide investors with every quarter. In fact, if you have a Coinbase Wallet you mint their recent earnings from their Investor Relations page. It's a great way to connect and engage the investment community. Coinbase Q1 2025 Shareholder Letter The Future of Stablecoins and the STABLES Act We are beginning to see the early stages of crypto adoption throughout the financial services industry. For context, I recommend looking at this one week in crypto post by Jason Yanowitz, who is the co-founder of Blockworks . x.com The updates from Stripe to Coinbase to Bitcoin and Ethereum are massive. Individually these seem like small updates, but they are meaningful as a group. For example, not mentioned above is Coinbase’s long-term partnership with Circle which is driving the growth of the USDC ecosystem on-chain. If you don’t use stablecoins like USDC, then you probably aren’t familiar with Circle or even the STABLE Act. First, Circle is planning to IPO this year and its plans were only on pause because of volatility from the Trump tariffs in April. But now the STABLE Act, or the Stablecoin Transparency and Accountability for a Better Ledger Economy Act of 2025 (H.R. 2392), a new legislation introduced on April 2nd, 2025 is bullish for Circle and Coinbase. The bill aims to establish a regulatory framework for stablecoins, specifically dollar-denominated payment stablecoins. I’ve watched these stablecoin updates for months because I know how bullish this will be for the crypto ecosystem. For example, the U.S. established a Strategic Bitcoin Reserve and Digital Asset Stockpile, which was a landmark executive order in January. This will help the U.S. government monetize its crypto assets on behalf of the American taxpayer. This was also bullish for Coinbase because they make money from providing custody for crypto assets. During the 2024 election, I followed Stand With Crypto , a Coinbase-backed nonprofit advocacy group, for political updates. Their website gave me excellent updates on how politicians view the asset class in real-time. And on May 14th, 2025, Stand With Crypto held an event in Washington, D.C. to bring together over 60 crypto founders from 26 states. The group aimed to push for bipartisan regulatory frameworks to establish clear crypto rules. These positive developments have increased my confidence to go long Coinbase. The $2.9 Billion Acquisition of Deribit Coinbase’s acquisition of Deribit was the largest crypto acquisition in the past few months. A few months ago, Kraken’s acquisition of NinjaTrader was a big deal for the trading community because it made Kraken more mainstream. Before Kraken and Coinbase, it was Stripe’s acquisition of Bridge to enter the stablecoin industry in a big way. I won't comment much about futures and derivatives because I don’t have enough experience regarding either when it comes to crypto. But I do know that the trading community loves these products, and they generate significant fees for exchanges. I suspect more trading volume to come from these acquisitions, and it will support the rumors of Kraken going public in 2026. The Success of Entering the S&P 500 index With all of that said, I am writing about Coinbase because it has joined the S&P 500 index, which is a massive deal for the company, industry and shareholders. Event-driven investing is an excellent way to make money if the events are pre-defined. Examples include mergers and acquisitions, product announcements or some corporate action. It’s not typical, but stocks entering or exiting an index like the S&P 500 is also a massive liquidity event. This is also the exact moment when smart money profits from fast money. You see, when a stock enters the S&P 500 Index, or a similar broad market index, there will be countless fund managers who will indirectly buy Coinbase stock because of their passive investment strategy. For context, the stock is already up 27% over the past week on the news. Google Finance This announcement will pivot Coinbase’s investor base from growth to momentum. Something similar happened when Palantir joined the S&P 500 index last September as well. I think the momentum for new investors to buy Coinbase stock will continue for the foreseeable future. Most retail investors won't realize how significant this news is and try justifying not buying the stock because of its rich premium. Instead, investors can expect the premium to continue to be rich as Coinbase is a one-of-a-kind investment. That’s until more crypto companies go public and join the S&P 500 index in the future. Cybersecurity Concerns with Armstrong Like any exchange, Coinbase is under constant threat. Even with the transparency that comes with crypto, cybersecurity threats are always imminent. And last week, Coinbase discovered that cybercriminals bribed a small group of their overseas support agents to steal customer data. Watch this video of CEO Brian Armstrong on X, addressing customers and investors about the recent attacks on the Coinbase platform. You can read a detailed post on how Coinbase is handling this matter on their blog . x.com Coinbase is refusing to pay the $20 million ransom demanded by the criminals and will instead establish a $20 million reward fund for info of those responsible. The company is also reimbursing customers who were tricked into sending funds to the attackers. These cybersecurity attacks are learning lessons for the company and shareholders. Every financial institution is exposed to similar challenges. But fortunately for Coinbase, the S&P 500 announcement overcame these attacks and the stock has been up double-digits for the past few days. However, investors definitely need to be aware of these cyberattacks in the future. Coinbase is no exception to these and crypto is full of stories riddled with fraud, scam and theft. Do your best to understand how crypto works before buying Coinbase stock. The Valuation of Coinbase Financial technology stocks are a tough business to value for several reasons. First, Coinbase has become a momentum stock, and it will continue to trade at a premium for the foreseeable future. However, the main challenges with valuing Coinbase is that it has several different business models that most investors aren’t familiar with. For example, crypto itself is a tough asset to value. Today, Coinbase offers over 212 assets for custody and 172 assets for trading. But every week, millions of tokens are attempting to list on the Coinbase exchange. This makes it difficult for the average investor to understand the level of custody and trading exposure Coinbase has at any moment. In Coinbase’s recent earnings, you will find that total revenue was down 10%, but adjusted net income was up significantly to $527 million. Even though transaction revenue was down, Coinbase experienced gains from holding crypto assets such as Bitcoin. Coinbase also saw its average assets under custody grow to $212 billion, up $25 billion from the past quarter. Also, USDC, the second-largest dollar-backed stablecoin, saw substantial growth in Q1 2025, with its market cap exceeding $60 billion . Coinbase's efforts to integrate USDC into its products have driven increased adoption among retail and institutional users. The average USDC held in Coinbase products grew to $12.3 billion, which is up 49% quarter over quarter. I expect this adoption to continue to rise as institutional USDC balances reach an all-time high. The cybersecurity concerns and entering the S&P 500 index have created a buying opportunity for investors today. By becoming a momentum stock, Coinbase has the clear sight to become a $100 billion market cap stock over the next two years. This will put the share price closer to $400 by the end of 2027. By joining the S&P 500 Index, investors and fund managers will find a reason to increase their crypto exposure. This will create a flywheel unlike any we’ve ever seen before in the tech industry. Even with a high revenue multiple, Coinbase will likely accrue significant custody assets in 2025, creating a sound fundamental position for investors to buy the stock today.
Ethereum Reverses to $2.3K After Weekly High Ethereum (ETH) trades at $2,378, which is down by 5% in the past 24 hours after reaching a weekly high of $2,693. Despite the recent decline, the second-largest cryptocurrency still trades up more than 35% in the past month, which indicates the resilience of the crypto as the market as a whole recovers. Several experts are seeing the pullback as merely a temporary correction and not the start of a more severe downtrend. Spike in Volume Reflects Renewed Market Interest Ethereum spot trading volume has exploded. Over the past 24 hours alone, spot trading volume rose a whopping 128.6% to $29.6 billion, a sign of intense interest from retail and institutional traders alike. Derivative markets kept up — as per CoinGlass metrics, ETH futures trading volume rose 135%, even though open interest fell 5.53%. This is a combination that indicates short-term investors are closing positions as fresh money is ready to find its way into the market, preparing the ground for a potential resumption of the uptrend. Momentum Indicators Provide Mixed Signals Technically, Ethereum has cooled off after reaching near the top Bollinger Band. Relative Strength Index (RSI) dropped from overbought levels to 59.6, indicating lesser severe bullish pressure. Short-term indicators like the 10-day exponential and simple moving averages (EMA and SMA) are turning bearish, though ETH still holds above the 20-, 30-, and 50-day moving averages — a sign of more generalized trend strength. The MACD (Moving Average Convergence Divergence) remains in the positive territory, showing there’s still a lot of room to keep going up should Ethereum find support in the current price level. Analysts Continue to Remain Divided but Hopeful Short-term market analysts are bullish on Ethereum. Popular commentator Crypto Titan noted that Ethereum’s weekly Stochastic RSI is not yet in the extreme overbought region, which implies “more gas in the tank” for the coin to go higher. On the other hand, Crypto Patel credits the present price action as a corrective health after ETH’s rejection at the $2,500 level — an important fair value gap (FVG). He anticipates Ethereum can slip into the $1,930–$2,100 range, which aligns with past FVG levels and a bullish order block at $1,810. If demand resumes at these levels, Patel expects ETH to possibly rally towards the $4,000–$5,000 region in the near term. Outlook: Will ETH Find Key Support? Ethereum’s near-term response can be precarious, but its overall structure remains bullish. As long as ETH finds support at the key levels of demand, the setup is there for the next leg up. With heavy volume and a history of improving market tone, Ethereum can resume its path higher at any moment — if the buyers appear at the appropriate levels.
The post Bitcoin Juggling Between Pivotal Levels-Here’s What’s Next for the BTC Price Rally if it Plunges Below $102K appeared first on Coinpedia Fintech News Bitcoin’s price recorded the highest weekly close in history, above $107,000, clearing the path towards a new ATH. Meanwhile, the bears have intensified their action, which has dragged the levels below the previous day’s open range, raising huge concerns over the upcoming price action. On the other hand, BTC’s liquidity range has entered a crucial phase wherein a strong conflict between the bulls and the bears could be seen as a means of gaining supremacy in the coming days. Ever since the BTC price triggered a rebound from the local lows, the whales and the bulls seem to have become more optimistic. As a result, more long traders were being placed with massive leverage. This made the retail traders bullish on Bitcoin, offering a strong boost to the BTC price rally, which almost marked the highs. Frightfully, these whales have begun to extract profit, which seems to be a major reason behind the current downfall. As suggested by the above data, a Hyperliquid whale who had placed a 40x long trade on Bitcoin has begun to take profits after earning $10 million in 24 hours. Interestingly, the whale still holds a massive $337 million long position on BTC, which shows a serious conviction. Now the question arises whether the Bitcoin bull run has more room or it’s time for the exit door. The daily chart of Bitcoin continues to remain under bullish influence, despite the bearish interference. The price just faced a rejection before entering the final resistance zone below the ATH, which suggests a final correction before marking a new high. The On-Balance Volume has been plunging, which indicates a drop in the buying activity with an increase in the sell-offs. However, the MA levels keep up some hope as the BTC price could be heading towards a Golden Cross. The 50/200-day MA is heading for a bullish crossover, which usually triggers a massive upswing. Hence, the upcoming monthly close could have a major impact on the upcoming rally, as a successful completion of a Golden Cross could propel the BTC price above $110,000. In case of a failure, the star crypto may begin with a strong pullback, extending the correction phase.
Cryptocurrency exchange Coinbase is facing a class-action lawsuit in the U.S. state of Illinois, which claims that the company may have violated the state’s Biometric Information Privacy Act. A group of Coinbase customers has accused the platform of improperly collecting and storing facial data during its identity verification process. Filed in the U.S. District Court for the Northern District of Illinois on May 13, the lawsuit alleges that Coinbase’s Know Your Customer checks involve scanning users’ facial geometry without proper notice or consent, a move the plaintiffs say directly breaches Illinois’ biometric privacy laws. According to the complaint, users were required to upload a government-issued ID and a selfie, which were then processed by third-party facial recognition software. The group claims this process captured their biometric identifiers, such as faceprints, without prior written notice or notification of the collection without a publicly available “retention schedule or guidelines” for data destruction, as required under BIPA. “ At no point during the Verification Process are Coinbase users asked to consent to the collection of their biometric information, notified that their biometric data will be collected by an unrelated third party, nor provided with any information about the process, how it works, the type of information and data collected, whether said data is stored or disclosed to other entities, or any information about the retention or destruction of their biometric information.” Bernstein v. Coinbase Global, Inc. According to the complaint, Coinbase transmitted facial data to third-party vendors, including Jumio, Onfido, Au10tix, and Solaris, without obtaining explicit permission. You might also like: Coinbase impersonators steal over $2m in BTC and ETH from retired artist Further, it claims that more than 10,000 individuals have filed for arbitration over these issues, but Coinbase has allegedly failed to pay the necessary arbitration fees, resulting in many of those cases being dismissed. That being said, the group is pushing for financial penalties of up to $5,000 per reckless violation, or $1,000 where negligence is found, in addition to legal expenses and injunctive relief. Coinbase has not publicly commented on the lawsuit at the time of writing. Interestingly, this isn’t the first time Coinbase has been in hot water over alleged BIPA violations in Illinois. As previously reported by crypto.news, a class-action lawsuit filed by a local in May 2023 targeted the exchange over its collection of facial data and fingerprint templates through its mobile app. That case was eventually paused after a judge approved Coinbase’s motion to move the dispute into arbitration. The lawsuit was dismissed without prejudice in February this year, after both parties agreed to drop the case. Making matters worse, Coinbase has also come under fire over a recent data breach involving customer support agents allegedly bribed to leak user data. At least six related lawsuits have since been filed, intensifying scrutiny over the platform’s handling of sensitive information. In other news, Illinois recently dropped a separate lawsuit against Coinbase over its staking program, following similar moves by Kentucky , Vermont, and South Carolina after the SEC dismissed its own case. Read more: Coinbase breach strikes PayPal Mafia royalty, Sequoia Capital boss
Cryptocurrency exchange Bybit said it had involved team members, including an executive, to fix a glitch that affected a single user who could not go through an Apple-based know-your-client (KYC) system. In a May 18 X post , the Bybit China Team said it received reports about users experiencing withdrawal restrictions on the Bybit platform due to a KYC verification anomaly when logging in with an Apple ID. The team claimed to have immediately responded and taken action involving multiple departments, including the firm’s chief operating officer, Helen Liu. Other people involved in the operation were the heads of customer service, risk control, the Chinese-language division, product managers and the technical team. The exchange coordinated its actions with the user. After an internal investigation, Bybit concluded this was a “unique case affecting an individual user, not a systemic issue.” The account’s KYC information was not tampered with and the funds in the account remained secure at all times. Bybit had not answered Cointelegraph’s request for comment at the time of writing. Related: A decade-old debate is back as self-custody gets smarter The perks of media attention Bybit claims to have taken large-scale and timely action, which involved a member of its executive team, all in response to an issue reported by a single user. Chinese-speaking X crypto influencer EnHeng claimed to be the reason for this. In a separate post that Bybit’s X post answers to — EnHeng explained that in a group chat, he noticed “a girl mentioned a bug related to Bybit’s Apple ID.” He verified the issue and after confirming that it was real, flagged it to Bybit. EnHeng said that the staff responded quickly and assisted the user in recovering access to about $100,000 worth of funds. They highlighted: “This incident really made me feel the value of having influence.” EnHeng said “in this market, retail investors often lack a voice and are vulnerable.” For this reason, he said, “When we have more resources and a bigger voice, we should use them to speak up for retail investors.” Related: Self-custody vs. centralized crypto cards: Freedom or convenience? Locked out of exchange Being locked out of a cryptocurrency exchange account or some of its features is not excessively uncommon. Often, it is an emergency measure meant to prevent fund losses. A recent example is Phemex crypto exchange halting withdrawals after being alerted to nearly $30 million worth of suspicious outflows that raised alarms among blockchain security firms in late January. Indian cryptocurrency exchange Mudrex temporarily halted crypto withdrawals during the same month, claiming compliance improvements were the reason. Sometimes action is taken on the request of law enforcement. Last summer, a small set of Palestinian user accounts was frozen after Israeli authorities issued a seizure request. Also last summer, OKX warned it would terminate any account linked to crypto mixer Tornado Cash or sanctioned addresses, and several users said their log-ins were suddenly disabled. Those incidents echo an old adage popular in the Bitcoin (BTC) community: Not your keys, not your coins. This statement is meant to remind Bitcoin — and now crypto — users that real control over assets comes only with control over the private keys that allow for signing transactions. Magazine: Danger signs for Bitcoin as retail abandons it to institutions: Sky Wee