Coinbase disclosed concerning details about a recent data breach, investors filed a class action lawsuit against Strategy, and three major banks were reportedly exploring the idea of a joint stablecoin.
Decrypt publishes a weekly roundup titled ‘Public Keys’ to track major developments involving publicly traded cryptocurrency companies.
Concerning Revelations Emerge from Coinbase Data Breach
Newly revealed details have made the data breach Coinbase disclosed to its users and investors last week even more concerning.
The company did not indicate that additional data had been stolen, but it filed a disclosure with the Maine Attorney General that included several crucial details omitted from its earlier SEC filing and blog post about the exploit.
The breach occurred on December 26, 2024, but Coinbase didn’t identify it until May 11, 2025—leaving a 136-day gap during which the company remained unaware that customer data had been compromised. In its 8-K filing, Coinbase mentioned December only in the standard section on forward-looking statements.
In its blog post, Coinbase stated that fewer than 1% of its monthly transacting users were affected, leaving readers to estimate the actual number. However, the disclosure filed in Maine gave a specific figure, revealing that data from 69,461 users had been exposed.
Make no mistake—despite investor concerns following the disclosure, the market has largely shrugged them off. 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 about the data breach—are any details still undisclosed? Roughly 70,000 affected individuals share this concern. Since the breach may have exposed sensitive personal information, including the residential addresses of potentially high-net-worth users, TechCrunch and Arrington Capital founder Michael Arrington warned that lives could be at risk.
Rush for the ‘Crown Jewel’ Offering Gains Momentum
“Investors filed a new class action lawsuit against Strategy and its co-founder, Michael Saylor, alleging that the company misled them about the risks of its aggressive Bitcoin accumulation strategy.”
The plaintiffs specifically raised concerns about Strategy’s most recent earnings report, which warned that the company might not regain profitability in future periods—especially if it incurs substantial unrealized losses related to digital assets.
Investors filed a lawsuit in a Virginia federal court, alleging that MicroStrategy downplayed Bitcoin’s volatility, which led to substantial losses.
However, Strategy has remained consistent in its approach, continuing to accumulate Bitcoin with the expectation of improving market conditions. Just days later, the company unveiled a ‘crown jewel’ offering valued at $2.1 billion in Perpetual Strife Preferred Stock (STRF).
Investors have expressed doubt about 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.
Compliance teams continue to exercise caution when engaging on public networks. However, when developers remove the permissionless nature, these initiatives begin to resemble traditional systems—though modern technology enhances them with greater speed and cost-efficiency. Still, choosing a fully permissionless approach hasn’t guaranteed success either. PayPal launched the PYUSD stablecoin on the Ethereum network in August 2023, and according to CoinGecko, it ranks as the 110th largest stablecoin with a market capitalization of $880 million.
However, opting for a fully permissionless approach has not guaranteed success either. PayPal launched the PYUSD stablecoin on the Ethereum network in August 2023. According to CoinGecko, it currently ranks as the 110th largest stablecoin with a market capitalization of $880 million.
The Securities and Exchange Commission issued a subpoena to the company in November 2023 regarding its stablecoin, PYUSD, drawing regulatory scrutiny. However, investigators recently concluded the case without pursuing any enforcement action.
However, it’s important to acknowledge that the fintech payments platform PayPal hasn’t held the same level of influence as the trio of major Wall Street institutions. If regulators in Washington grant approval, the landscape could shift significantly.
