Sequoia Capital Exposed in Coinbase Security Breach—VC Data Leak Could Spread Wider
Another day, another crypto data breach—only this time, Silicon Valley’s golden boys are holding the bag. Sequoia Capital, the blue-chip VC firm that backed Coinbase, just got caught in the exchange’s latest security slip-up. And they probably won’t be the last.
When life gives you leaks, make lemonade—or short the affected stocks. Because if there’s one thing Wall Street loves more than disruption, it’s watching disruptors get disrupted.
Botha Manages Assets Worth Hundreds of Millions
While Botha’s personal holdings remain undisclosed, he is believed to manage assets worth hundreds of millions.
Coinbase confirmed the incident in a May 15 blog post, stating that cybercriminals had gained access to customer data by exploiting internal support systems.
The attackers reportedly demanded a $20 million ransom, which Coinbase refused. The full scope of the breach remains unclear.
Security teams at Kraken and Binance are also investigating similar intrusion attempts, Bloomberg reported, although neither exchange has publicly confirmed exposure.
Philip Martin, Coinbase’s Chief Security Officer, revealed that the compromised support staff were based in India and have since been terminated.
The company has filed a disclosure with the U.S. Securities and Exchange Commission, estimating remediation costs between $180 million and $400 million.
The breach hit Coinbase’s stock hard, with shares (COIN) dropping over 7% to $244 before recovering slightly to $264.24.
Coinbase suffered a massive data breach. But no, its systems didn’t get hacked.
Humans did.
We unpack how bribery, social engineering, and KYC failures put Coinbase users at risk, and why this keeps happening across crypto.
w/ @lopp, @jameswester and @Leishman.… pic.twitter.com/RmD7PgZJex
Meanwhile, Coinbase CEO Brian Armstrong was seen in Washington, D.C., engaging with lawmakers as Congress debates two key pieces of crypto legislation — one on stablecoins and another on digital asset market structure.
The breach comes at a critical moment for the crypto industry’s regulatory outlook and could influence legislative sentiment as the bills MOVE toward a vote.
Coinbase Q1 Revenue Climbs, But Profit Falls 94%
Coinbase reported mixed first-quarter results, with revenue rising 24% year-over-year to $2 billion, but falling short of analyst expectations and down 10% from the previous quarter.
While transaction revenue grew to $1.26 billion, its subscription and services division—covering staking and custodial offerings—rose 37% to nearly $700 million, reflecting growing diversification beyond trading.
Despite the revenue uptick, net income plunged 94% to $66 million as the company marked down its crypto holdings amid market volatility.
Adjusted earnings stood at $526.6 million, or $1.94 per share, still below last year’s figure of $2.53. Operating expenses surged 51% to $1.3 billion due to aggressive marketing and asset write-downs.
Coinbase’s earnings were weighed down by unpredictable macroeconomic conditions and fluctuations in digital asset prices.
However, the company noted its second-highest ever monthly user count, with CFO Alesia Haas highlighting increased engagement across non-trading services.
