Coinbase says staff leaked customer data, refuses to pay $20M ransom

By: bitcoin ethereum news|2025/05/15 20:15:05

Coinbase has revealed that cybercriminals have tried to blackmail the exchange for $20 million in bitcoin (BTC) and have bribed rogue customer support agents to steal customer data According to the company’s CEO, Brian Armstrong, a ransom note sent to the exchange threatened to release this data that could be used to carry out social engineering scams. Coinbase said, “Their aim was to gather a customer list they could contact while pretending to be Coinbase — tricking people into handing over their crypto. They then tried to extort Coinbase for $20 million to cover this up. We said no.” Read more: Coinbase mocked over four-hour candle launch: ‘What next, full-screen mode?’ The exchange claims it’s now “cooperating closely with law enforcement to pursue the harshest penalties possible and will not pay the $20 million ransom demand we received.” Instead, Coinbase countered the attempted blackmail by announcing a similarly priced bounty for anyone with information that may lead to the arrest of the alleged attackers. It also confirmed that it will reimburse any scammed customers. The rogue agents involved are said to have gathered personal data, including government ID images, transaction history, names, and details of bank accounts and social security numbers. However, Coinbase claims they weren’t able to get private keys, login credentials, access to accounts or wallets, or any ability to move customer funds themselves. Coinbase has a social engineering problem This isn’t the first run-in with social engineering attacks on the exchange. Crypto sleuth ZachXBT claims the issue is rampant and estimates that Coinbase users are losing $300 million a year to social such scams. Indeed, in the first week of May, ZachXBT claimed that Coinbase users have lost $45 million through Coinbase-focused social engineering scams. He said, “Over the past few months, I have reported on nine figures stolen from Coinbase users via similar social engineering scams. Interestingly, no other major exchange has the same problem .” Metamask security researcher Taylor Monahan claimed that “kids” are stealing roughly $50 million every weekend by taking over Coinbase accounts. She critiqued its introduction of a messaging platform available through the Coinbase wallet, and said it will give “scammers a direct, encrypted line to all their wallet users. Incredible.” Protos has contacted Coinbase for comment and will update if we receive a response. Got a tip? Send us an email securely via Protos Leaks . For more informed news, follow us on X , Bluesky , and Google News , or subscribe to our YouTube channel. Source: https://protos.com/coinbase-says-staff-leaked-customer-data-refuses-to-pay-20m-ransom/

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