Coinbase Hacked for Customer Data, Turns Tables on Would-Be Extortionists

By: bitcoin ethereum news|2025/05/16 11:00:12

Cybercriminals tried to blackmail Coinbase into paying $20 million in Bitcoin over stolen customer data. Instead of paying up, the crypto exchange is offering the same amount as a bounty to help bring the perpetrators to justice. The crypto exchange revealed how rogue overseas support agents were bribed by the criminals to leak sensitive user data, including names, addresses, masked bank details, and ID documents, in a blog post published Thursday. Cyber criminals bribed and recruited rogue overseas support agents to pull personal data on <1% of Coinbase MTUs. No passwords, private keys, or funds were exposed. Prime accounts are untouched. We will reimburse impacted customers. More here: https://t.co/SidVn59JCV — Coinbase ️ (@coinbase) May 15, 2025 While no funds, passwords, or private keys were compromised, and Coinbase Prime accounts remained “untouched,” the attackers used the data to launch targeted social engineering scams on customers. “They then tried to extort Coinbase for $20 million to cover this up. We said no,” the company wrote in their statement. A video statement from CEO Brian Armstrong was cited by Coinbase in lieu of a direct response to Decrypt , in which he declared, “We are not going to pay your ransom.” In a move mirroring the plot of the 1996 film “Ransom,” Armstrong added that he had, “a few next steps in mind... We’re putting out a $20 million award for any information leading to the arrest and conviction of these attackers,” the CEO said. The counter-move marks a shift in how crypto firms are responding to criminal threats. While companies typically offer bounties to encourage hackers to return stolen assets, Coinbase is using the reward to go on the offensive against cybercriminals. “This is a huge problem in the industry, and it’s only getting worse,” said Philip Martin, Coinbase’s Chief Security Officer, in an interview with Fortune . He confirmed the compromised support agents were based in India and have all been terminated. “Hell no!” Martin added how the ransom demand came with a threat to publish the stolen data unless Coinbase paid. “The knee-jerk reaction of every single person who heard we were being extorted was ‘hell no!’” he said. Coinbase said it is working with law enforcement, has tagged the attackers’ wallet addresses, and will reimburse any customer who lost funds due to the social engineering attack. The company is also launching a new U.S.-based support hub and tightening access controls across its systems. “We will prosecute you and bring you to justice,” Armstrong said in his closing message to the attackers. “Now you have my answer.” Daily Debrief Newsletter Start every day with the top news stories right now, plus original features, a podcast, videos and more. Source: https://decrypt.co/320200/coinbase-turns-tables-on-would-be-extortionists-offers-20m-bounty-for-information

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