Ari Paul Alleges Coinbase Lost $25M in BlockTower Funds

Ari Paul, founder and chief investment officer of BlockTower Capital, alleged Sept. 28 that Coinbase lost approximately $25 million belonging to his firm and concealed the incident.

Paul also alleged that security breaches affecting more than a dozen financial institutions resulted in combined concealed losses exceeding $1 billion.

Paul reportedly cited active legal proceedings as the reason he could not provide further details. Coinbase’s customer-support account contacted him by direct message after his post, but Coinbase had not issued a public statement as of Sept. 29.

BlockTower Capital is an institutional crypto asset-management firm founded in 2017. The allegations raise questions about the handling and disclosure of institutional funds held through crypto exchanges.