Coinbase Faces Dual Crisis: Stock Plunge and Major Data Breach in 2025
In December 2024, Coinbase expanded its platform to include stock and prediction market trading, allowing users to trade stocks, ETFs, and cryptocurrencies 24/7 from a single interface. However, 2025 proved tumultuous for the exchange, as its stock value halved—dropping nearly 50%—amid a broader crypto market downturn. The decline shrank Coinbase’s market capitalization from over $90 billion to approximately $70 billion, reflecting reduced trading volumes and investor sentiment.
Compounding its financial struggles, Coinbase suffered a significant data breach in 2025, where customer service representatives improperly accessed sensitive Know Your Customer (KYC) data. Exposed information included customers’ addresses, phone numbers, and government-issued IDs, raising concerns over internal security controls and compliance risks. The incident underscores the vulnerabilities in handling personally identifiable information (PII) within high-profile financial platforms.
The breach and stock decline highlight the dual pressures facing Coinbase—regulatory scrutiny, market volatility, and operational security challenges—as it navigates an increasingly competitive and risk-laden landscape.
Coinbase cybersecurity rating report: https://www.rankiteo.com/company/coinbase
"id": "COI1767389997",
"linkid": "coinbase",
"type": "Breach",
"date": "1/2025",
"severity": "85",
"impact": "4",
"explanation": "Attack with significant impact with customers data leaks"{'affected_entities': [{'industry': 'Financial Services / Cryptocurrency',
'name': 'Coinbase',
'size': 'Large (Market cap reduced from over $90 '
'billion to ~$70 billion in 2025)',
'type': 'Cryptocurrency Exchange'}],
'data_breach': {'personally_identifiable_information': 'Yes',
'sensitivity_of_data': 'High (Government IDs, addresses, '
'phone numbers)',
'type_of_data_compromised': 'Personally Identifiable '
'Information (PII), KYC Data'},
'description': 'In 2025, Coinbase experienced a major data breach where '
'customer service representatives accessed and exposed '
'sensitive KYC data, including addresses, phone numbers, and '
'government IDs.',
'impact': {'brand_reputation_impact': 'High (Stock dropped nearly 50% in '
'2025)',
'data_compromised': 'KYC data (addresses, phone numbers, '
'government IDs)',
'identity_theft_risk': 'High'},
'references': [{'source': 'American Bankers Association'},
{'source': 'FactSet Research Systems Inc.'}],
'threat_actor': 'Customer Service Representatives',
'title': 'Coinbase Data Breach and KYC Information Exposure',
'type': 'Data Breach',
'vulnerability_exploited': 'Insider Threat / Unauthorized Access'}