I have recordings proving Coinbase knew about breach months before disclosure
64 comments
·November 16, 2025chaps
Once did some programming/networking work for a company that did the networking of a office sharing building that Coinbase was running out of. Early in my work there I noticed that the company had its admin passwords written on a whiteboard -- visible from the hallway because they had glass for walls. So I sent them an email to ask that they remove it (I billed them for it).
Their fix was to put a piece of paper over the passwords.
What a time.
Aurornis
> So I sent them an email to ask that they remove it (I billed them for it)
Sending unsolicited bills for unrequested services is a great way to make sure nobody takes your email seriously
nightpool
GP is saying that they were already one of Cloudflare's vendors (they did the networking/IT setup for Cloudflare's office). Whether you'd tolerate that kind of behavior from a vendor is one thing, but for an existing vendor relationship I think adding a few billable hours for "I found this issue in your network and documented and reported it for you" to an existing contract is not particularly unreasonable.
aorloff
More likely, this is a spectacular version of CYA. By billing the hours, there is a paper trail so that when the inevitable breach occurs, you can point to having done the appropriate thing.
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bongodongobob
They are lucky they just got a bill and not a terminated contract. Consulting companies I have worked for would have dropped them immediately because we don't want clients with that kind of risk. Massive red flag that signals management is non-existent, incompetent, or checked out. That is egregious negligence.
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650REDHAIR
This doesn’t surprise me at all.
Bitcoin, and really fintech as a whole, are beyond reckless.
danielhlockard
You say that but I work in fintech (granted, one of the larger more corporate ones, after an acquisition) and we are heavily regulated, and audited.
KetoManx64
Bitcoin is a crypto-currency/blockchain. Coinbase is a corporation that allows users to buy/trade crypto-currencies.
With Bitcoin you do not get government bailouts like what happened during the beyond reckless banks in 2008.
arcanemachiner
> With Bitcoin you do not get government bailouts like what happened during the beyond reckless banks in 2008
It is not beyond imagination that the most popular Bitcoin blockchain (and thus, the label of being the "real" Bitcoin) could change at some point in the future.
"Bitcoin" is not immune from the implications of political fuckery.
monero-xmr
Ah yes, I remember all the times they hacked bitcoin
arcanemachiner
It's been a while, but it has happened:
lxgr
Bitcoin really is a terrible employer.
jamespo
lol monero in username
8organicbits
There's a great index of hacks here https://www.web3isgoinggreat.com/?theme=hack
It's breathtaking how frequent these are.
AlexErrant
Here's a Reuters report from June 2, which includes a link to a May 14 SEC filing:
> Cryptocurrency exchange Coinbase knew as far back as January about a customer data leak at an outsourcing company connected to a larger breach estimated to cost up to $400 million, six people familiar with the matter told Reuters.
https://www.reuters.com/sustainability/boards-policy-regulat...
> On May 11, 2025, Coinbase, Inc., a subsidiary of Coinbase Global, Inc. (“Coinbase” or the “Company”), received an email communication from an unknown threat actor claiming to have obtained information about certain Coinbase customer accounts, as well as internal Coinbase documentation, including materials relating to customer-service and account-management systems.
https://www.sec.gov/Archives/edgar/data/1679788/000167978825...
jclarkcom
Very interesting... January 7th is when I reported it to them so that lines up. I suspect I wasn't the very first person, the person I spoke with on the phone had the confidence I wouldn't expect on the first try.
j-bos
> an outsourcing company
From what I've seen, this is going to be a common subheading to a lot of these stories.
anxman
Not sure if the op is reading, but I also detected the same Coinbase hack around the same timeline. From what I can tell, literally everything was compromised because even their Discord channel's api keys were compromised and were finally reset around April or May. This means their central secrets manager was likely compromised too.
paulbjensen
I got rung in the UK I think a month ago from someone claiming to be from Coinbase. I told them I only had about £5 of Bitcoin cash in my account (which was true), and they immediately lost interest and said a forthcoming email would handle the matter.
They also asked if I had cold storage. I told them I had a fridge (also true).
KetoManx64
Hahaha, i'm using this next time I get a spam call
mtlynch
This is an extremely clickbaity headline.
The "recordings" are of a phisher attempting to get information from the author. It proves nothing about what Coinbase knew.
The author turned the information over to Coinbase, but that doesn't prove Coinbase knew about their breach. The customer could have leaked their account details in some other way.
jclarkcom
I sent the phone recording and emails to coinbase, and they acknowledged them saying "This report is super robust and gives us a lot to look into. We are investigating this scammer now."
divvvyy
Wild tale, but very annoying that he wrote it with an AI. It's horribly jarring to read.
Grimblewald
How do you know?
I'm not trying to be recalcitrant, rather I am genuinly curious. The reason I ask is that no one talks like a LLM, but LLMs do talk like someone. LLMs learned to mimic human speech patterns, and some unlucky soul(s) out there have had their voice stolen. Earlier versions of LLMs of LLMs that more closely followed the pattern and structure of a wikipedia entry were mimicking a style that that was based of someone elses style and given some wiki users had prolific levels of contributions, much of their naturally generated text would register as highly likely to be "AI" via those bullshit ai detector tools.
So, given what we know of LLMs (transformers at least) at this stage it seems more likely to me that current speech patterns again are mimicry of someones style rather than an organically grown/developed thing that is personal to the LLM.
gmzamz
Looks like AI to me too. Em dashes (albeit nonstandard) and the ‘it’s not just x, it’s y’ ending phrases were everywhere. Harder to put into words but there’s a sense of grandiosity in the article too.
Not saying the article is bad, it seems pretty good. Just that there are indications
lynndotpy
It's also strange to suggest readers use ChatGPT or Claude to analyze email headers.
Might as well say "You can tell by the way it is".
yuvadam
This blog post isn't human speech, it's typical AI slop. (heh, sorry.)
Way too verbose to get the point across, excessive usage of un/ordered bullets, em dashes, "what i reported / what coinbase got wrong", it all reeks of slop.
Once you notice these micro-patterns, you can't unsee them.
Would you like me to create a cheat sheet for you with these tell tale signs so you have it for future reference?
drabbiticus
Just chiming in here - any time I've written something online that considers things from multiple angles or presents more detailed analysis, the liklihood that someone will ask if I just used ChatGPT go way up. I worry that people have gotten really used to short, easily digestible replies, and conflate that with "human". Because of course it would be crazy for a human to expend "that much effort" on something /s.
EDIT: having said that, many of the other articles on the blog do look like what would come from AI assistance. Stuff like pervasive emojis, overuse of bulleted lists, excessive use of very small sections with headers, art that certainly appears similar in style to AI generated assets that I've seen, etc. If anything, if AI was used in this article, it's way less intrusive than in the other articles on the blog.
jclarkcom
Author here - yes, this was written using guided AI. I consider this different than giving a vague prompt and telling it to write an article. My process was to provide all the information, for example I used AI to: 1. transcribe the phone call into text using whisper model 2. review all the email correspondence 3. research industry news about the breach 4. brainstorm different topics and blog structures to target based on the information, pick one 5. Review the style of my other blog articles 6. write the article and redact any personal info 7. review the article and suggest iterate on changes multiple times. To me this is more akin to having a writer on staff who can save you a lot of time. I can do all the above in less than 30mins, where it could take a full day to do it manually. I had a blog 20 years ago but since then I never had time to write content again (too time consuming and no ROI) - so the alternative would be nothing.
There are some still some signs you can tell content is AI written based on verbosity, use of bold, specific HTML styling, etc. I see no issues with the approach. I noticed some people have an allergic reaction to any hint of AI, and when the content produced is "fluff" with no real content I get annoyed too - however that isn't the case for all content.
BobAliceInATree
I don't know if he wrote it via AI, but he repeats himself over and over again. It could have been 1/3 the length and still conveyed the same amount of information.
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glitchc
Supporting evidence required.
alwa
I know I shouldn’t pile on with respect to the AI Slop Signature Style, but in the hopes of helping people rein in the AI-trash-filter excesses and avoid reactions like these…
The sentence-level stuff was somewhat improved compared to whatever “jaunty Linked-In Voice” prompt people have been using. You know, the one that calls for clipped repetitive phrases, needless rhetorical questions, dimestore mystery framing, faux-casual tone, and some out-of-proportion “moral of the story.” All of that’s better here.
But there’s a good ways left to go still. The endless bullet lists, the “red flags,” the weirdly toothless faux drama (“The Call That Changed Everything”, “Data Catastrophe: The 2025 Cyber Fallout”), and the Frankensteined purposes (“You can still protect yourself from falling victim to the scams that follow,” “The Timeline That Doesn't Make Sense,” etc.)…
The biggest thing that stands out to me here (besides the essay being five different-but-duplicative prompt/response sessions bolted together) are the assertions/conclusions that would mean something if real people drew them, but that don’t follow from the specifics. Consider:
“The Timeline That Doesn't Make Sense
Here's where the story gets interesting—and troubling:
[they made a report, heard back that it was being investigated, didn’t get individual responses to their follow-ups in the immediate days after, the result of the larger investigation was announced 4 months later]”
Disappointing, sure. And definitely frustrating. But like… “doesn’t make sense?” How not so? Is it really surprising or unreasonable that it takes a large organization time, for a major investigation into a foreign contractor, with law enforcement and regulatory implications, as well as 9-figure customer-facing damages? Doesn’t it make sense (even if it’s disappointing), when stuff that serious and complex happens, that they wait until they’re sure before they say something to an individual customer?
I’m not saying it’s good customer service (they could at least drop a reply with “the investigation is ongoing and we can’t comment til it’s done”). There’s lots of words we could use to capture the suckage besides “doesn’t make sense.” My issue is more that the AI presents it as “interesting—and troubling; doesn’t make sense” when those things don’t really follow directly from the bullet list of facts afterward.
Each big categorical that the AI introduced this way just… doesn’t quite match what it purports to describe. I’m not sure exactly how to pin it down, but it’s as if it’s making its judgments entirely without considering the broader context… which I guess is exactly what it’s doing.
anonym29
Many people find whining about coherent, meaningful text based on the source identity to be far more annoying than reading coherent, meaningful text.
But I guess you knew that already, which is why you just made a fresh burner account to whine on rather than whining from your real account.
KomoD
Coherent? It's really annoying to read.
The post just repeats things over and over again, like the Brett Farmer thing, the "four months", telling us three times that they knew "my BTC balance and SSN" and repeatedly mentioning that it was a Google Voice number.
anonym29
Almost sounds like the posts of people whining about LLMs.
Of course, unlike those people, LLMs are capable of expressing novel ideas that add meaningful value to diverse conversations beyond loudly and incessantly ensuring everyone in the thread is aware of their objection to new technology they dislike.
happyopossum
Interesting timeline, but nothing here proves, or even strongly indicates, that Counbase “knew about the breach” from this one report.
Screenscraping malware is fairly common, and it’s not unreasonable for an analyst to look at a report like this and assume that the customer got popped instead of them.
Customers get popped all the time, and have a tendency to blame the proximate corporation…
jclarkcom
That's true, but in this case I got a response from the head of trust and safety after I sent the phone recording, email + email headers, saying "This report is super robust and gives us a lot to look into. We are investigating this scammer now."
what-the-grump
We use Coinbase as an org, we were targeted in early Feb 2025. Caught by person handling the accounts who is paranoid enough to reach out to the org contact on the other side.
jrm4
FWIW, this is why "not your keys, not your coins."
Coinbase is good for on-ramping, bad for storage. You know, the entire point of cryptocurrency.
tchalla
Founder mode.
anonym29
Has anyone demonstrated that agentic AI systems can be bribed with money, or is that vulnerability still strictly relegated to unrealiable, untrustworthy biological intelligence?
This doesn't seem like proof to me.
The author got a phishing call and reported it. Coinbase likely has a deluge of phishing complaints, as criminals know their customers are vulnerable and target their customers regularly. The caller knowing account details is likely not unique in those complaints; customers accidentally leak those all the time. Some of the details the attacker knew could have been sourced from other data breaches. At the time of complaint, the company probably interpreted the report as yet another customer handling their own data poorly.
Phishing is so pervasive that I wouldn't be surprised if the author was hit by a different attack.