Coinbase Stock Plummets 3.23% Amid Cybersecurity Scandal Trading Volume Drops to 22nd Rank

On May 23, 2025, Coinbase Global (COIN) experienced a significant decline in its stock price, dropping by 3.23%. The trading volume for the day was $24.38 billion, marking a 42.11% decrease from the previous day, placing it at the 22nd position in the daily stock market rankings.

Coinbase's stock price decline was triggered by the disclosure of a material cybersecurity incident on May 15, 2025. The company revealed that a threat actor had gained access to nearly 70,000 customers' personal information, raising concerns about the adequacy of its internal controls and disclosure processes. The incident involved an unknown threat actor who claimed to possess customer account information and internal documentation, allegedly obtained by paying contractors or employees to extract it from Coinbase's systems.

Coinbase reported that it had previously detected these unauthorized data accesses and estimated that remediation and customer reimbursement costs could reach $400 million. The company took immediate action by firing workers who were inappropriately viewing customer data and enhancing fraud protections. Customers were notified as far back as December.

Further questions regarding the timeliness of Coinbase's disclosure and the adequacy of its security controls arose when it was reported that rivals Binance and Kraken had been targeted by the same type of hack but were able to fend off the attacks without losing customer data. This revelation raised concerns about whether Coinbase had misrepresented its security controls and delayed disclosing the serious cybersecurity incident.