Concerning details about a recent data breach were disclosed by Coinbase, a class action lawsuit was filed against Strategy, and the consideration of a joint stablecoin was reportedly being explored by three major banks.
A weekly roundup titled “Public Keys” is published by Decrypt to monitor major developments involving publicly traded cryptocurrency companies.
Concerning Revelations Emerge from Coinbase Data Breach
The data breach that was disclosed by Coinbase to its users and investors last week has been made more concerning by newly revealed details.
It was not indicated that additional data had been stolen, but a disclosure was filed by the company with the Maine Attorney General, which contained several crucial details that had been omitted from its earlier SEC filing and blog post regarding the exploit.
The breach had taken place on December 26, 2024, but it was not identified until May 11, 2025. This resulted in a span of 136 days during which the company remained unaware that customer data had been compromised. In Coinbase’s 8-K filing, December was referenced only within the standard section concerning forward-looking statements.
In its blog post, Coinbase indicated that fewer than 1% of its monthly transacting users had been affected, requiring readers to estimate the actual figure. However, the disclosure filed in Maine provided a specific number, stating that data from 69,461 users had been exposed.
It should not be misunderstood—investor concerns following the disclosure have been largely shrugged off by the market. The company’s stock, listed under the COIN ticker on the Nasdaq, had risen to $271.95 by yesterday’s close. This marked its highest level since February, likely driven in part by Bitcoin hitting a new all-time high.
However, one pressing question remains regarding the data breach—are there any additional undisclosed details? This concern is shared by roughly 70,000 affected individuals. Given that sensitive personal information, such as residential addresses of potentially high-net-worth users, may have been exposed, TechCrunch and Arrington Capital founder Michael Arrington expressed apprehension that lives could potentially be endangered.
Rush for the ‘Crown Jewel’ Offering Gains Momentum
A new class action lawsuit has been filed against Strategy and its co-founder, Michael Saylor, by investors who claim they were misled regarding the risks associated with the company’s aggressive approach to Bitcoin accumulation.
Specific concern was raised by the plaintiffs regarding Strategy’s most recent earnings report, in which it was stated that profitability might not be regained in future periods, especially if substantial unrealized losses related to digital assets are incurred.
A lawsuit was filed in a Virginia federal court alleging that the volatility of Bitcoin had been downplayed by MicroStrategy, resulting in substantial losses being incurred by investors.
However, the Strategy approach has remained consistent: Bitcoin accumulation has been maintained with the expectation that market conditions will improve. Just days later, a “crown jewel” offering valued at $2.1 billion in Perpetual Strife Preferred Stock (STRF) was unveiled by the company.
Doubt has been expressed by investors regarding the latest offering. Despite Bitcoin achieving two new all-time highs during the week, shares of MSTR concluded the week 7% lower compared to the previous Friday.
Rising Challengers in the Stablecoin Race
Recent developments regarding the GENIUS Act stablecoin legislation in Washington, D.C., have prompted major Wall Street institutions—JPMorgan, Citigroup, and Wells Fargo—to explore a potential collaboration aimed at launching a dollar-pegged stablecoin, as reported earlier this week by The Wall Street Journal.
If accurate, the development could be significant, though it remains uncertain how much market share the three banks would be able to capture from the $248 billion in stablecoins currently in circulation, based on data provided by CoinGecko.
One element raises concerns: the banks are considering tokenized deposit products, which is promising, but also exploring permissioned blockchains. That’s typically where large institutions begin to lose credibility within the on-chain ecosystem. “Permissioned,” often a synonym for “private,” renders such networks more akin to traditional systems, making them blockchains in name only.
Caution is still being exercised by compliance teams when it comes to engaging on public networks. However, once the permissionless nature is removed, such initiatives begin to resemble traditional systems—albeit enhanced with modern technology that offers greater speed and cost-efficiency.However, opting for a fully permissionless approach has not guaranteed success either. The PYUSD stablecoin, which was launched by PayPal on the Ethereum network in August 2023, has been ranked as the 110th largest stablecoin, holding a market capitalization of $880 million, as reported by CoinGecko.
However, opting for a fully permissionless approach has not guaranteed success either. The PYUSD stablecoin, which was launched by PayPal on the Ethereum network in August 2023, has been ranked as the 110th largest stablecoin, holding a market capitalization of $880 million, as reported by CoinGecko.
The Securities and Exchange Commission issued a subpoena to the company in November 2023 regarding its stablecoin, PYUSD, drawing regulatory scrutiny. However, the investigation was recently concluded without any enforcement action being pursued.
It must be acknowledged, however, that the fintech payments platform PayPal has not been regarded with the same level of influence as the trio of major Wall Street institutions. Should regulatory approval be granted in Washington, a significant shift in the landscape could be expected.
