Coinbase, a US-based cryptocurrency exchange platform, reported a significant loss in its second-quarter 2025 earnings due to a major data breach, sparking widespread concern among investors and users alike.
The company disclosed a US$307 million loss in the quarter, attributing the breach, which was disclosed in May 2025, to cybercriminals bribing offshore customer service representatives. Initial estimates for the breach were as high as US$400 million, highlighting the severity of the incident.
The Q2 report also revealed a substantial decline in revenue, with a 26% decrease in total revenue and a 39% drop in transaction revenue. Cryptocurrency spot volumes decreased by over 30% compared to the prior quarter, further impacting the company’s financial performance.
Despite these setbacks, Coinbase reported a net income of US$1.43 billion, a significant increase from US$66 million in the previous quarter and US$36 million year-over-year. The company’s trading volumes for Q2 2025 reached US$237 billion, compared to US$226 billion in Q2 2024, indicating a continued demand for cryptocurrency trading.
Following the earnings release, Coinbase shares experienced a decline of over 3% in after-hours trading, settling at US$363.80. However, the stock remains up more than 40% year-to-date, suggesting a level of resilience in the face of the data breach and financial setbacks.
