Coinbase resists $20 million Bitcoin ransom demand after insider-led data breach

By: cryptosheadlines|2025/05/16 00:45:05

Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com Coinbase revealed that it suffered a data breach that affected less than 1% of its active monthly users, according to the May 15 statement.Following the hack, the exchange CEO Brian Armstrong said the perpetrators tried to extort it of $20 million in Bitcoin.How Coinbase was breachedAccording to the exchange, the threat actors recruited and bribed a group of overseas support agents with access to its internal systems.These insiders leaked sensitive data, which allowed the threat actors to impersonate Coinbase staff and carry out social engineering scams.According to the firm, the compromised data included names, contact details, identity documents, and masked bank and social security information.However, Coinbase stressed that its users’ login credentials, private keys, and core infrastructure, including Prime wallets, remained secure.Meanwhile, the company has terminated the compromised insiders and vowed to pursue legal action against them. It is also working with law enforcement agencies to investigate the breach.Coinbase further announced that it will compensate affected users.The attackers attempted to extort $20 million from the firm following the breach. However, Coinbase rejected the demand, stating:“We will not pay the $20 million ransom demand we received. Instead we are establishing a $20 million reward fund for information leading to the arrest and conviction of the criminals responsible for this attack.”ZachXBT’s connectionWhile Coinbase has not confirmed any direct links, blockchain investigator ZachXBT noted that the breach aligns with previous social engineering attacks he has reported.In a response to the Coinbase announcement, ZachXBT said:“Indeed there’s a lot of Coinbase user thefts I posted tied to the group.”Over recent months, ZachXBT has detailed how Coinbase users have collectively lost hundreds of millions of dollars to elaborate phishing and impersonation tactics. He estimated that such scams cost the exchange users more than $300 million yearly.However, Wintermute CEO Evgeny Gaevoy believed the current rigid regulatory frameworks allowed these attacks to flourish.According to him:“This is the dark side of the idiotic and nonsensical kyc/aml regime we live in. Making life marginally convenient for law enforcement and geopolitical games, while sacrificing our privacy, imposing a massive tax on pretty much all businesses, and making it easier for criminals to rob, kidnap and do crime.”Mentioned in this articleLatest Alpha Market ReportSource link

On March 4, 2026, DDC Enterprise Limited (NYSE American: DDC) today announced preliminary, unaudited full-year financial performance for the year ended December 31, 2025. The company expects to achieve record revenue and record positive adjusted EBITDA, primarily driven by continued growth in its core consumer food business and overall margin improvement. The final audited financial report is expected to be released in mid-April 2026.

2025 Full-Year Financial Highlights

Revenue: Expected to be between $39 million and $41 million, reaching a new company high.

Organic Growth: Excluding the impact of the company's strategic contraction of its U.S. operations, core revenue is expected to grow 11% to 17% year over year.

Gross Profit Margin: Expected to be between 28% and 30%, reflecting continued operational efficiency improvements.

Adjusted EBITDA: The company expects to achieve a positive full-year result in 2025, a significant improvement from a $3.5 million loss in 2024, mainly due to rigorous cost controls and a higher-margin sales mix.

Core Consumer Food Business Performance

In 2025, DDC's core consumer food business maintained strong operational performance.

The company also disclosed Core Consumer Food Business Adjusted EBITDA, a metric that further excludes costs related to its Bitcoin reserve strategy and non-cash fair value adjustments related to its Bitcoin holdings from adjusted EBITDA to more accurately reflect the core business performance.

In 2025, Core Consumer Food Business Adjusted EBITDA is expected to be between $5.5 million and $6 million.

Bitcoin Reserve Update

In the first half of 2025, DDC initiated a long-term Bitcoin accumulation strategy, holding Bitcoin as its primary reserve asset.

As of December 31, 2025: The company holds 1,183 BTC.

As of February 28, 2026: Holdings increased to 2,118 BTC

Today's additional purchase of 65 BTC brings the company's total holdings to 2,183 BTC

DDC Founder, Chairman, and CEO Norma Chu stated, "We are proud to have closed 2025 with record revenue and positive adjusted EBITDA, demonstrating the steady growth of the company's consumer food business and the ongoing improvement in profitability. We are building a disciplined, growth-oriented food platform and strategically allocating capital to Bitcoin assets with a long-term view, aligning with our core beliefs. We believe that this dual-track model of 'Steady Consumer Business + Strategic Bitcoin Reserve' will help DDC create lasting long-term value for shareholders."

Adjusted EBITDA Definition
For the full year 2025, the company defines "Adjusted EBITDA" (a non-GAAP financial measure) as: Net income / (loss) excluding the following items:· Interest expense· Taxes· Foreign exchange gains/losses· Long-lived asset impairment· Depreciation and amortization· Non-cash fair value changes related to financial instruments (including Bitcoin holdings)· Stock-based compensation

About DDC Enterprise Limited

DDC Enterprise Limited (NYSE: DDC) is actively implementing its corporate Bitcoin Treasury strategy while continuing to strengthen its position as a leading global Asian food platform.

The company has established Bitcoin as a core reserve asset and is executing a prudent, long-oriented accumulation strategy. While expanding its portfolio of food brands, DDC is gradually becoming one of the public company pioneers in integrating Bitcoin into its corporate financial architecture.

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DDC Enterprise Limited Announces 2025 Unaudited Preliminary Financial Performance: Record Revenue Achieved, Bitcoin Treasury Grows to 2183 Coins