Coinbase faces $400M bill after insider phishing attack

By: the crypto news wire|2025/05/15 20:45:04

Coinbase, the world’s third-largest cryptocurrency exchange, was hit by a $20 million extortion attempt after cybercriminals recruited overseas support agents to leak user data, the company said. According to a May 15 blog post, Coinbase said a group of external actors bribed and coordinated with several customer support contractors to access internal systems and steal limited user account data. “These insiders abused their access to customer support systems to steal the account data for a small subset of customers,” Coinbase said, adding that no passwords, private keys, funds or Coinbase Prime accounts were affected. Less than 1% of Coinbase’s monthly transacting users’ data was affected by the attack, the company said. Source: Coinbase After stealing the data, the attackers attempted to extort $20 million from Coinbase in exchange for not disclosing the breach. Coinbase refused the demand. Related: Ukraine strategic Bitcoin reserve bill reportedly in final stages Instead, the company offered a $20 million reward for information leading to the arrest and conviction of those responsible for the scheme. Scammers often masquerade as recognizable brands to inspire a false sense of trust in their victims. US brands impersonated by scammers the most. Source: Mailsuite In 2024, Coinbase was the most impersonated cryptocurrency brand by scammers. Related: Top South Korean presidential hopefuls support legalizing Bitcoin ETFs Coinbase will reimburse phishing attack victims Coinbase said it will reimburse users who were tricked into sending cryptocurrency to phishing scammers, with expected remediation and reimbursement expenses ranging from $180 million to $400 million. The crypto exchange disclosed the estimate in an 8-K filing with the US Securities and Exchange Commission on May 15, noting the expenses relate to “voluntary customer reimbursements” and other remediation efforts. The attackers have been approaching the exchange’s overseas customer support agents for months, aiming to “bribe” them in exchange for customer information, said Coinbase co-founder and CEO Brian Armstrong in a May 15 X post . Source: Brian Armstrong Following the attack, the exchange will strengthen its internal data management processes and relocate some of its customer support operations to avoid similar incidents. Social engineering schemes are a growing concern for Coinbase users. Blockchain security analyst ZachXBT estimated that users lost around $45 million to phishing schemes in the week leading up to May 7. Source: ZachXBT The blockchain security analyst previously claimed that social engineering scams cost Coinbase users over $300 million annually , Cointelegraph reported on Feb. 4. Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

On March 4, 2026, DDC Enterprise Limited (NYSE American: DDC) today announced preliminary, unaudited full-year financial performance for the year ended December 31, 2025. The company expects to achieve record revenue and record positive adjusted EBITDA, primarily driven by continued growth in its core consumer food business and overall margin improvement. The final audited financial report is expected to be released in mid-April 2026.

2025 Full-Year Financial Highlights

Revenue: Expected to be between $39 million and $41 million, reaching a new company high.

Organic Growth: Excluding the impact of the company's strategic contraction of its U.S. operations, core revenue is expected to grow 11% to 17% year over year.

Gross Profit Margin: Expected to be between 28% and 30%, reflecting continued operational efficiency improvements.

Adjusted EBITDA: The company expects to achieve a positive full-year result in 2025, a significant improvement from a $3.5 million loss in 2024, mainly due to rigorous cost controls and a higher-margin sales mix.

Core Consumer Food Business Performance

In 2025, DDC's core consumer food business maintained strong operational performance.

The company also disclosed Core Consumer Food Business Adjusted EBITDA, a metric that further excludes costs related to its Bitcoin reserve strategy and non-cash fair value adjustments related to its Bitcoin holdings from adjusted EBITDA to more accurately reflect the core business performance.

In 2025, Core Consumer Food Business Adjusted EBITDA is expected to be between $5.5 million and $6 million.

Bitcoin Reserve Update

In the first half of 2025, DDC initiated a long-term Bitcoin accumulation strategy, holding Bitcoin as its primary reserve asset.

As of December 31, 2025: The company holds 1,183 BTC.

As of February 28, 2026: Holdings increased to 2,118 BTC

Today's additional purchase of 65 BTC brings the company's total holdings to 2,183 BTC

DDC Founder, Chairman, and CEO Norma Chu stated, "We are proud to have closed 2025 with record revenue and positive adjusted EBITDA, demonstrating the steady growth of the company's consumer food business and the ongoing improvement in profitability. We are building a disciplined, growth-oriented food platform and strategically allocating capital to Bitcoin assets with a long-term view, aligning with our core beliefs. We believe that this dual-track model of 'Steady Consumer Business + Strategic Bitcoin Reserve' will help DDC create lasting long-term value for shareholders."

Adjusted EBITDA Definition
For the full year 2025, the company defines "Adjusted EBITDA" (a non-GAAP financial measure) as: Net income / (loss) excluding the following items:· Interest expense· Taxes· Foreign exchange gains/losses· Long-lived asset impairment· Depreciation and amortization· Non-cash fair value changes related to financial instruments (including Bitcoin holdings)· Stock-based compensation

About DDC Enterprise Limited

DDC Enterprise Limited (NYSE: DDC) is actively implementing its corporate Bitcoin Treasury strategy while continuing to strengthen its position as a leading global Asian food platform.

The company has established Bitcoin as a core reserve asset and is executing a prudent, long-oriented accumulation strategy. While expanding its portfolio of food brands, DDC is gradually becoming one of the public company pioneers in integrating Bitcoin into its corporate financial architecture.

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DDC Enterprise Limited Announces 2025 Unaudited Preliminary Financial Performance: Record Revenue Achieved, Bitcoin Treasury Grows to 2183 Coins