Coinbase’s Security Scrutiny Amid Bitcoin’s Record Rally

As Bitcoin reaches unprecedented heights, Coinbase faces heightened security scrutiny with its $20 million hack bounty still unclaimed. Prediction markets are abuzz with speculation on Bitcoin’s next move and the unresolved bounty payout.

Bitcoin Hits New All-Time High as Prediction Markets Buzz

Bitcoin surged to a record high, fueling speculation on Myriad Markets about whether it will surpass $115,000 by Sunday. Traders are placing bets on the cryptocurrency’s volatile trajectory, reflecting broader market optimism.

Coinbase’s $20 million hack bounty remains unclaimed, with predictors wagering no payout will occur before June 15. The exchange’s security measures continue to draw scrutiny amid rising institutional interest in digital assets.

Prediction markets are gaining traction as a tool for crypto enthusiasts to monetize their insights. Platforms like Myriad now offer diverse wagering options, from NBA championships to entertainment industry outcomes, though their volatility often mirrors the crypto markets they track.

Coinbase Breach: Crypto’s Weakest Link Isn’t Code — It’s People

The latest breach at Coinbase underscores a recurring vulnerability in the crypto industry: human error. Hackers exploited overseas customer-support contractors through bribery and social engineering, not technical flaws. The timing couldn’t be worse—Coinbase was on the verge of joining the S&P 500 when the breach unfolded.

Fewer than 1% of users were impacted, but the financial toll is steep. The exchange anticipates $180–$400 million in remediation costs. This incident serves as a stark reminder that even robust technology can falter when human judgment is compromised.

The breach, which began in late 2024, involved criminals bribing contractors to siphon customer data. Regulatory filings reveal the operation started around December 26, 2024, highlighting the persistent threat of insider risks in decentralized ecosystems.