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BlockTower claims Coinbase lost $25M, raising Bitcoin custody and transfer approval concerns.

Market News
21 Oct 2026
Tokenpost
View Source
Bearish
BlockTower claims Coinbase lost $25M, raising Bitcoin custody and transfer approval concerns.

BlockTower Capital founder Ari Paul alleges Coinbase lost about $25 million of his firm's funds and accuses the company of hiding losses exceeding $1 billion involving other firms. Coinbase denies these claims but has not specifically addressed the $25 million loss. This dispute highlights broader issues around Bitcoin custody, such as who can authorize transfers and how to verify asset holdings. While Coinbase offers controls like transfer approvals and proof-of-reserves reports, these do not fully guarantee asset security or liability. The SEC has proposed new custody rules, but they are not yet in effect and would not apply to all Bitcoin holders.

The Coinbase dispute over alleged Bitcoin custody losses is the subject, with Pluang data providing market context. For readers following cryptocurrency markets, here is Pluang's snapshot as of Oct 21, 2026 10:41 WIB: out of 50 major cryptocurrencies priced on Pluang, 42 rose and 7 fell today. Notable movers include EOS (EOS.IO) up 8.13% at Rp12.649 with a typical hold time of 87 days, VeChain (VET) up 7.50% at Rp130 with a near-even buy/sell split and a hold time of 148 days, and Decentraland (MANA) up 6.60% at Rp1.583 with 87% sell activity and a hold time of 157 days.

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