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TechCrunch’s founder, Michael Arrington, said Coinbase’s recent data breach “will lead to people dying.” According to him, executives who don’t “adequately protect” customer information should go to jail. The venture capitalist said, “Something that has to be said though – this hack – which includes home addresses and account balances – will lead to people dying. It probably has already.” As Cryptopolitan reported , Coinbase confirmed a data breach that exposed the personal information of some customers. These customers included well-known people in the tech field. Cybercriminals bribed customer service reps in other countries to get access to sensitive user data without permission. The hackers tried to force Coinbase to pay $20 million in Bitcoin over stolen customer data, but the exchange refused. Coinbase revealed this on Thursday. Instead, the company offered a $20 million reward for any information to help catch and convict the attackers. Michael Arrington said regulators should think again about the importance of “know-your-customer” (KYC). He added, “Very disappointed in Coinbase right now. Using the cheapest option for customer service has its price. And Coinbase’s customers will bear that cost.” He also said that problems like these will keep happening because of KYC and other laws that make it easy for hackers to get away with their crimes. He added that the government and businesses need to do something to stop this. However, Balaji Srinivasan, the former chief technology officer of Coinbase, disagreed with Arrington’s view that leaders should be punished. He said regulators are forcing KYC on companies that don’t want to do it. Digital assets are increasingly linked to real-world heists. It reminds investors why keeping crypto private is essential. Last November, three teens kidnapped a man in Las Vegas after a crypto event he put on and held him hostage at his home with a gun. He was pushed into a car and taken out into the desert. Attackers got into his crypto wallets and stole $4 million worth of cryptocurrency and non-fungible tokens (NFTs). This year also has a share of kidnappings. In January, a group of thieves broke into the home of David Balland, co-founder of Ledger, in Vierzon, France. They took Balland and his wife hostage, beat them up, and cut off one of Balland’s fingers to get to his crypto wallet keys. After the attack, the thieves called another co-founder of Ledger and demanded a ransom. Police arrested 10 suspects. In addition, a famous streamer and OnlyFans personality named Kaitlyn “Amouranth” Siragusa had her home broken into by three armed men in March. They beat her up and told her to send them her Bitcoin. Luckily for her, she could fire her gun, which made the attackers run away. As recent as this month, the father of a crypto millionaire was kidnapped in broad daylight on the streets of Paris. French cops were able to free him. It was said that the kidnappers wanted a ransom of €5 million to €7 million. The attackers cut off one of the man’s fingers as a cruel way to get him to obey. Police arrested five suspects. Because of these and other events, a physical security company in Amsterdam told Bloomberg that it had seen a rise in clients with big amounts of crypto before the Coinbase breach. Your crypto news deserves attention - KEY Difference Wire puts you on 250+ top sites

Financial dramas are unfolding one after another but are not alike in the crypto universe. The latest development: Cardano, long praised for its academic rigor, faces an explosive accusation of embezzling approximately $600 million in ADA. Charles Hoskinson, the project’s guiding figure, promises an audit. This case could redefine trust at the very heart of decentralized governance. The fire has been smoldering since an NFT artist, Masato Alexander, claimed that Hoskinson quietly used a “genesis key” to rewrite the ledger during the 2021 Allegra hard fork. Supporting this claim: a so-called Move Instantaneous Rewards transaction from October 24, 2021, which transferred 318 million ADA from reserves to what appears to be a treasury fund. The accusation speaks of a total embezzlement amounting to $619 million, a significant portion of the Cardano war chest . However, Hoskinson presents a more mundane timeline: these tokens originated from ICO allocations that remained unclaimed. According to him, the majority of the targeted 350 million ADA were claimed by their initial buyers over seven long years — and the remaining shortfall was paid to Intersect, the community governance body. “IOG never pocketed such a sum,” he insists, dismissing the idea of a hidden slush fund. This denial was not enough to calm Twitter: influencers, on-chain analysts, and ordinary users dissect every UTXO searching for anomalies. Some recall the opacity of other projects during previous crises; others emphasize that Cardano built its reputation on formal rigor. The perception gap is stark: on one side, a protocol aiming to be exemplary; on the other, the image of a founder suspected of accounting manipulation. Amid the uproar, the Cardano Foundation and Input Output Global commissioned a third-party “forensic” audit. The report , promised in the coming weeks, aims to trace every ADA since 2015. Hoskinson, visibly “deeply hurt” by the prevailing skepticism, announces that he will soon entrust his X account to a media team and will revamp his famous AMA sessions. A gesture illustrating the tension between radical transparency and personal fatigue. Beyond the saga, the episode questions the very nature of crypto governance. Hoskinson, speaking recently at Paris Blockchain Week 2025, advocated for a “collaborative economy” capable of competing with Big Tech soon to be regulated. Ironically timed: the scandal reveals how much a network’s legitimacy depends less on its code than on the fragile trust between founders and community. What remains is the post-audit phase. If the findings clear Cardano, the process could become a salutary precedent: proving that a blockchain can self-examine without invoking a central authority. Otherwise, the ecosystem will have to accept that no protocol is immune to a human blind spot. Whatever happens, this episode reminds us of a simple truth: in crypto, transparency is not a marketing slogan but a vital imperative. Also discover the statements that hammer Coinbase .

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