The initiative targets active traders as competition intensifies across cryptocurrency exchanges and decentralized trading platforms. 

Through tiered rewards, Coinbase aims to encourage higher trading volumes and strengthen customer retention. However, the program raises questions about whether fee incentives can sustain long-term engagement.

Coinbase Wallet introduces cashback tiers based on trading volume

Coinbase Wallet launched its loyalty rewards program on October 20, 2026, offering up to 50% cashback on eligible trading fees.

According to Coinbase Wallet, customers receive rebates in USDC based on their rolling 30-day trading volume. The company distributes rewards weekly, with higher trading activity unlocking larger cashback percentages.

Traders who reach $5,000 in volume qualify for 15% cashback on eligible fees. Meanwhile, the reward increases to 30% at $25,000 and 40% at $100,000.

Customers who reach $500,000 in rolling trading volume qualify for the highest 50% cashback tier.

However, Coinbase calculates rewards against eligible trading costs rather than the total value of transactions. Consequently, a $500,000 trade does not generate $250,000 in cashback.

The initiative differs from Coinbase Bermuda Technologies Limited’s existing referral program, which offers referred customers a 10% fee discount.

That discount covers eligible native, same-chain swaps, while referring users receive 25% of profits from qualifying trades.

However, the referral program excludes several jurisdictions, including Italy, the United Kingdom, Malta, the Philippines, and Singapore.

Coinbase expands trading services amid growing exchange competition

The cashback launch follows Coinbase’s September decision to rebrand Base App as Coinbase Wallet and prioritize trading services.

The company’s expanded trading strategy includes Hyperliquid-powered perpetual futures, prediction markets, and tokenized stocks.

Meanwhile, Coinbase reported a record 10.3% share of global cryptocurrency trading during the second quarter. The July report covered spot markets, derivatives, and stablecoin transactions.

Average USDC holdings across Coinbase products also reached $20 billion during the period.

CEO Brian Armstrong has emphasized that Coinbase’s business extends beyond exposure to Bitcoin price movements.

Competition remains intense as centralized exchanges face pressure from decentralized trading platforms.

According to CoinGecko, leading centralized exchanges recorded $1.65 trillion in third-quarter spot trading volume, representing a 14.2% decline.

Meanwhile, decentralized exchanges increased their spot market share from 6.9% in January 2024 to 13.6% in January 2026.

Coinbase’s cashback initiative could also support its USDC operations by encouraging traders to retain and reuse rewards.

The company reported capturing approximately half of USDC economics over the previous year.

Cashback rewards favor larger traders as retail activity grows

Research suggests financial incentives can influence participation in cryptocurrency loyalty programs.

A 2025 SAGE Open study identified perceived usefulness as an important factor behind customer interest in blockchain loyalty programs.

Similarly, Juniper Research highlighted cashback incentives as a competitive feature for digital wallets. Analyst Thomas Wilson also identified rewards and gamification as important engagement tools.

However, Coinbase must demonstrate whether cashback incentives encourage lasting loyalty rather than temporary trading activity.

Chainalysis reported $9.4 trillion in global cryptocurrency activity during the year ending June 2026, representing a 1.6% decline.

That resilience came despite a 50% contraction in cryptocurrency market capitalization.

Meanwhile, transfers below $100 increased 78.4%, highlighting continued participation among smaller cryptocurrency users.

Those retail customers remain far below Coinbase Wallet’s $500,000 threshold for maximum cashback.

Although smaller traders can access lower reward tiers, the program directs its largest incentives toward high-volume customers.

Coinbase Wallet’s next challenge involves converting those trading incentives into sustained activity as competitors compete for the same customers.

The post Coinbase Wallet offers up to 50% fee cashback to attract high-volume traders first appeared on Coinfea.

His long-term outlook comes as institutional demand for Bitcoin strengthens through U.S. exchange-traded funds. 

Coinbase is also expanding its Bitcoin-backed lending products as crypto credit markets develop. Meanwhile, new federal disclosures show Bitcoin remains part of Defense Secretary Pete Hegseth’s investment portfolio.

Armstrong still expects Bitcoin to reach about $400,000 by 2030. He repeated that outlook during a September 19 interview with MoneyRehabPodcast.

The Coinbase Global CEO based his estimate partly on Bitcoin’s historical four-year market cycles. Bitcoin cuts the amount of new coins entering circulation through halvings roughly every four years.

Earlier cycles often produced major rallies followed by lengthy corrections. Armstrong said another comparable cycle could push Bitcoin toward three times its previous record before 2030.

However, he acknowledged that past performance cannot determine future Bitcoin prices. His $400,000 Bitcoin target therefore represents a possible scenario rather than a guaranteed outcome.

Coinbase shares traded at $198.85 on Pluang at 16:01 WIB on September 25, down 0.18% over 24 hours. The company had a $52.27 billion market capitalization. COIN’s 52-week range stood between $141.09 and $387.27.

Coinbase expands Bitcoin lending as ETF inflows reach $2.4 billion

Coinbase has introduced fixed-rate USDC loans that allow customers to use Bitcoin as collateral. Borrowers receive their interest rate and repayment deadline when they originate the loan.

The product operates through Morpho Midnight, a decentralized, noncustodial lending protocol launched in July. Base, Coinbase’s Ethereum layer-two network, handles settlement.

Coinbase will continue offering its Morpho Blue lending product, where borrowing rates change according to liquidity and demand. That variable-rate market has more than $1.4 billion in active loans backed by nearly $3 billion in collateral.

At the same time, U.S. spot Bitcoin ETFs recorded $2.4 billion in weekly net inflows through September 25. That marked their strongest weekly intake since October 2025.

Monday contributed $999 million, the ninth-largest daily inflow since spot Bitcoin ETFs launched in January 2024. The latest flows pushed 2026 net inflows to about $934.1 million.

The same funds showed roughly $5.8 billion in year-to-date outflows on July 13. Since inception, they have accumulated about $57.6 billion in net inflows, with assets reaching approximately $108.4 billion.

Bloomberg ETF analyst Eric Balchunas linked the flow reversal to Treasury plans involving increased purchases of longer-term government debt.

Pete Hegseth filing shows Bitcoin and rising cash holdings

Defense Secretary Pete Hegseth also reported Bitcoin holdings in his latest annual financial disclosure covering 2025. Two Coinbase wallet entries valued his combined Bitcoin position between roughly $16,000 and $65,000.

The filing lists at least $3.1 million across cash, retirement investments and Bitcoin. One bank account alone held more than $1 million.

Hegseth and his wife reported five retirement accounts worth between roughly $2.05 million and $4.35 million. His three accounts held between $500,000 and $1.25 million. Jennifer Hegseth’s two rollover IRAs ranged from approximately $1.55 million to $3.1 million.

The couple also disclosed three cash accounts. Their latest filing makes an exact year-to-year wealth comparison difficult because federal disclosures use broad valuation ranges.

Hegseth’s December 2024 nomination disclosure placed financial assets between roughly $1.4 million and $3.4 million. His latest filing has a lower bound of $3.1 million, while the largest cash account has no stated upper limit.

That account, listed as “U.S. Bank #2,” previously carried between $15,001 and $50,000. It now reports more than $1 million.

Separately, Republican Representative Thomas Massie introduced articles of impeachment against Hegseth on September 15 over his handling of the Iran war. Massie accused Hegseth of continuing military action without congressional authorization, allegations the Pentagon disputed.

The post Coinbase CEO Brian Armstrong sticks with $400K Bitcoin target by 2030 first appeared on Coinfea.

The case highlights the growing risks linked to fake customer support operations across digital asset platforms. 

Authorities said the fraud scheme relied on deception rather than advanced hacking techniques. Investigators traced stolen funds through blockchain records and digital evidence before bringing the operator to justice.

Ronald Spektor, 23, of Brooklyn, received a four-to-12-year prison sentence on September 23 after pleading guilty to stealing nearly $16 million in cryptocurrency from about 100 Coinbase users. He must also forfeit more than $500,000 in cash, crypto assets and personal property while repaying almost the entire stolen amount.

Brooklyn Supreme Court Justice Danny Chun issued the sentence after prosecutors brought 31 criminal counts against Spektor. 

The charges included first-degree money laundering, first-degree grand larceny and first-degree criminal possession of stolen property, according to the Brooklyn District Attorney’s Office.

Coinbase support scam targeted users through phone calls

Spektor’s Coinbase impersonation scam operated for about a year by convincing customers that their cryptocurrency accounts were under threat. Prosecutors said he contacted victims through phone calls while pretending to represent the crypto exchange’s support team.

The scammer allegedly warned users that hackers could steal their assets unless they transferred funds into a new secure wallet. He then guided victims through moving their cryptocurrency into wallets controlled by him.

Once users transferred their assets, Spektor emptied the wallets and moved the stolen funds through multiple transactions. Some victims lost more than $1 million, according to prosecutors.

The indictment showed that Spektor attempted to hide the movement of stolen cryptocurrency through several swaps across different exchanges. Investigators said the funds eventually moved toward cash-out points, with some money flowing to gambling platforms and online stores.

Prosecutors initially requested a sentence of seven to 21 years. However, the court imposed a four-to-12-year prison term. Spektor also received an order to repay nearly $16 million in restitution.

Blockchain evidence helped investigators track Spektor

Authorities used blockchain analysis, transaction records, digital forensics, and evidence collected through search warrants to identify Spektor. The Brooklyn District Attorney’s Virtual Currency Unit, led by Assistant District Attorney Alona Katz, handled the investigation.

Prosecutors connected Spektor’s home IP address to several cryptocurrency wallets involved in the thefts. They also said he publicly discussed his activities through online platforms, including a Telegram channel called “Blockchain enemies” under the handle @lolimfeelingevil.

Investigators found messages where Spektor claimed he lost millions through gambling and suggested he had earned large amounts from scams. Authorities also said he recruited others through online forums to participate in social engineering attacks.

After allegations emerged online, prosecutors said Spektor abandoned one crypto hardware wallet and purchased another in an attempt to avoid detection.

Brooklyn District Attorney Eric Gonzalez said the investigation showed authorities could track cryptocurrency-related crimes through digital evidence. “We will follow the digital trail wherever it leads,” Gonzalez said.

The case follows a wider wave of Coinbase impersonation scams linked to stolen customer information. In May 2025, Coinbase suffered a data breach after overseas support agents allegedly accepted bribes to expose customer information.

Coinbase said the breach affected less than 1% of its monthly transacting users and did not expose passwords, private keys, or customer funds. However, the leaked information contributed to phishing and fake support campaigns targeting users.

Other investigations have also uncovered similar activity. Blockchain investigator ZachXBT previously linked around $2 million in crypto thefts to a Canadian scammer using a comparable customer support impersonation method.

Separately, Coinbase and Microsoft helped disrupt EvilTokens, an AI-assisted phishing-as-a-service network. The investigation resulted in UK authorities arresting two individuals on September 11.

The post Coinbase support scammer faces 12 years after stealing $16M in crypto first appeared on Coinfea.

Ark sold 36,628 Coinbase (COIN) shares for about $7 million as the stock closed up 9.24% at $191.45. It sold 142,350 shares of Circle (CRCL) via two funds for about $13.8 million. CRCL gained 7.53% to $97.42. Ark sold 1,528,953 shares in the ARK 21Shares Bitcoin ETF (ARKB) for about $40 million, even as the fund jumped 2.22% to $26.19. The company also sold 153,881 shares of Bitmine (BMNR) for about $3.96 million and 18,280 shares of Bullish (BLSH) for $687,693. The day’s total came to about 1.88 million shares.

Ark Invest offloads Coinbase, Circle amid Clarity Act vote

Every name Ark touched had closed higher that day. That’s selling into strength. Ark limits each position to 10% of a fund’s total assets. For example, a sharp jump can send a position over that ceiling and set off a trim that happens almost automatically. In July, Cryptopolitan reported that Ark bought a lagging Circle and trimmed a rallying Robinhood. Through its ETFs, Ark is still one of the biggest institutional holders of crypto stocks. Coinbase and Circle’s stakes make Monday’s cuts less noticeable.

Crypto stocks rallied as Congress returned from its August recess and traders grew hopeful that the Digital Asset Market Structure Clarity Act might pass the Senate this month. Senate Republicans on Monday put out the final draft of the bill. It included changes Democrats had sought on ethics provisions, which Donald Trump had already signed off on. Polymarket odds that the Clarity Act would become law peaked at 34.5% early Monday, then fell to 16.5% by Tuesday afternoon.

The bill is set for a cloture vote at 2:15 p.m. ET on Tuesday. To move forward, the bill needs 60 votes, which is more than a simple majority can muster. Democrats didn’t accept the Republicans’ bill. On Monday night, they wrote their own counterversion. They want to change the ethics rule, which decides whether officials must divest crypto holdings or move them into a blind trust.

Democrats have pushed for tougher rules since Trump’s disclosures showed more than $1.4 billion in crypto-related income for 2025. They say the Republican wording leaves loopholes. “If Democrats are serious about reaching a deal, they need to actually start negotiating instead of resubmitting the same demands and calling it progress,” said Katie Warbinton, a spokesperson for Senator Cynthia Lummis.

The post Coinbase and Circle on the rise ahead of CLARITY Act vote first appeared on Coinfea.

The Coinbase Ventures-backed cross-chain infrastructure company announced the closure Friday through a post on X. The decision ends four years of development after attempts to secure a buyer or sustainable commercial agreement failed.

ROUTE holders face exchange delistings while the token trades below 1% of its record high. Router will coordinate with centralized platforms, although each exchange will establish trading and withdrawal deadlines.

Router Protocol Ends Its Four-Year Development Run

The planned burn represents 30% of ROUTE’s total supply of nearly one billion tokens. Holders using centralized exchanges should review listing pages and withdraw tokens before each platform’s deadline.

After delistings, Router will not start ROUTE projects. The organization will remain uninvolved with markets or liquidity pools created afterward.

The team plans to open-source software, allowing developers to use its technology.

Router spent the past year exploring licensing, business models, and a possible acquisition. None produced an arrangement capable of supporting the protocol’s team and continued development.

Lower Bridging Fees Weaken Router Protocol’s Business

Router attributed the closure to industry pressures. Venture funding moved from cryptocurrency toward artificial intelligence, while cross-chain bridging costs declined industrywide.

Blockchain activity became concentrated across fewer networks, reducing demand for customized infrastructure. Those changes undermined the economics supporting Router’s services.

“Bridging economics are thin, forcing fee compression against costs that never rest,” the founders said.

Router employed fewer than 10 people and relied on fundraising rather than operating revenue during development. In 2021, the company raised $4.1 million from Coinbase Ventures, Polygon, Woodstock Fund, and QCP Capital.

Polygon co-founder Sandeep Nailwal also invested individually. Router operated from Singapore, while most developers worked from India.

CEO Ramani Ramachandran founded the company alongside Shubham Singh, Chandan Choudhury, and Priyeshu Garg.

Security Problems Added Pressure Before Closure

Router Chain launched in July 2024 as a proof-of-stake Layer 1 network. ROUTE served as its gas, governance, and security token.

The company unwound the chain in September 2025, citing infrastructure expenses, validator inflation, security weaknesses, and changing priorities. It then focused on Open Graph Architecture for developing bridges and trading networks.

Router experienced two security incidents. A February 2025 exploit ended with 80% of affected funds recovered through negotiations.

A chain-level attack followed in July, and no funds were recovered. The developers said all protocol fees supported ROUTE purchases.

Router joins other infrastructure businesses that recently closed. Syndicate Labs ended operations in May, blaming a shrinking rollup market and demand shifting toward custom chains.

Bitcoin Layer 2 developer Botanix closed in June after finding that transaction fees could not cover expenses.

The post Router Protocol Shuts Down and Plans Burn of 303 Million ROUTE Tokens first appeared on Coinfea.

Pollak, Coinbase’s vice president of engineering and Base creator, argued that the company remains the world’s largest non-treasury Ethereum holder. Critics responded that Base generates sequencer fees in ETH before Coinbase converts those proceeds into dollars and bitcoin.

The dispute has renewed questions among Ethereum users and investors about loyalty from exchanges and businesses operating within its ecosystem.

Online Comment Sparks Coinbase Debate

The argument began after chaskin.eth said resentment toward Coinbase within the Ethereum community was “badly misplaced.” The X user compared the criticism with a business attacking its largest customers because they purchased less of its stock.

Pollak supported that assessment, saying it “blows my mind” that Coinbase faces attacks concerning ETH sales.

However, cyp.eth challenged venture investor Nick Tomaino’s description of Coinbase as “values aligned with Ethereum.” The critic said Coinbase’s values included “constantly selling ETH from Base execution fees to USD and BTC.”

That criticism reflects concerns that Base earns fees in ether before Coinbase allegedly converts the proceeds into other assets.

Pollak Highlights Coinbase Ethereum Holdings

Pollak avoided debating individual transactions and instead emphasized the scale of Coinbase’s holdings. He called Coinbase “the largest non-DAT holder of ETH by an order of magnitude.”

The description means Coinbase reportedly holds substantially more ether than peers outside dedicated digital-asset-treasury companies. Pollak also said, “Coinbase literally held 150K ETH for years,” despite market cycles and changing views about layer-2 networks.

Strategic ETH Reserve lists Coinbase with approximately 151,180 ETH, valued near $256 million. The exchange ranks sixth behind dedicated treasury companies, including Bitmine Immersion Tech, which holds more than 5.5 million ETH.

Base Sequencer Fees Fuel Wider Disagreement

The central criticism concerns Coinbase’s operation of Base’s sequencer, which orders and processes transactions. It collects fees in ETH, which critics say Coinbase converts into dollars or bitcoin.

Some observers argue that Coinbase keeps bitcoin on its balance sheet while treating ether as an operating asset. Chaskin.eth previously estimated that roughly 75% of Coinbase revenue came from trading and holding bitcoin while expressing hope that this changes.

Pollak said balance-sheet calculations overlook Coinbase’s wider Ethereum contributions. He cited its work delivering EIP-4844, which lowered layer-2 costs through “blob” data, alongside its role in creating USDC.

He also highlighted the millions of users Coinbase introduced to Ethereum, arguing that this reach outweighs one balance-sheet decision.

His response focused on holdings, infrastructure development, users, and decentralization.

Base launched in 2023 and has become one of Ethereum’s busiest layer-2 networks. It recently reached Stage 1 decentralization, reducing Coinbase’s direct control over network operations.

The post Coinbase ETH Selling Claims Rejected by Jesse Pollak as Ethereum Debate Intensifies first appeared on Coinfea.

Analysts expect Robinhood to post about $1.25 billion in revenue and earnings of roughly $0.40 per share. Coinbase is projected to generate around $1.3 billion in revenue while recording a loss of about $0.36 per share.

Both companies entered public markets in 2021 through different business models. Coinbase centered its operations on cryptocurrency trading and custody. Robinhood built its platform around commission-free brokerage services before expanding into crypto and digital assets.

Robinhood Gains Ground in Retail Trading

Artemis data shows Robinhood has historically received a higher enterprise value-to-revenue multiple than Coinbase. That valuation reflects investor treatment of Robinhood as a broader fintech company rather than a business mainly tied to crypto trading.

The difference has become more visible following analyst downgrades of Coinbase. Meanwhile, Mizuho analyst Dan Dolev said Robinhood could become the brokerage industry’s first “hyperscaler.”

Trading activity expanded at both firms between early 2024 and the first quarter of 2026. Robinhood’s quarterly trading volume rose from about $261 billion to more than $704 billion. Coinbase volume increased from roughly $185 billion to around $517 billion over the same period.

Those figures show Robinhood captured a larger share of retail trading activity. Both companies have invested heavily in tokenized equities as they develop revenue sources beyond transaction fees.

Coinbase Expands Stablecoin and Services Revenue

Coinbase has reduced its dependence on trading commissions through subscription and services products. Artemis data shows revenue in that segment climbed from about $103 million in mid-2021 to nearly $747 million by the third quarter of 2025.

Stablecoin revenue also increased from approximately $77 million in late 2022 to more than $364 million before easing slightly this year. These businesses helped offset weaker trading activity, while customer assets on the exchange stayed above bear-market lows.

Coinbase disclosed that more than half of first-quarter subscription and services revenue was connected to USDC. Banks and major payment companies are also introducing dollar-backed stablecoins.

Chief Executive Brian Armstrong has shifted Coinbase toward financial infrastructure after earlier efforts to build a social network through Base failed.

Robinhood Builds a Wider Global Platform

Robinhood announced Robinhood Chain, an Arbitrum-based Layer-2 network, alongside tokenized United States stocks for customers in more than 120 countries. The company says it serves nearly 28 million customers across 38 countries.

Chief Executive Vlad Tenev described tokenization as a possible “supercycle” for capital markets. Crypto contributes about 12% of Robinhood’s revenue, with brokerage services, options, prediction markets, and other products providing additional income.

That broader mix helps explain Robinhood’s higher valuation despite revenue levels that closely resemble Coinbase’s.

The post Coinbase and Robinhood Earnings Put Crypto’s Next Phase in Focus first appeared on Coinfea.

Coinbase chief executive Brian Armstrong said quantum technology does not threaten Bitcoin. Even so, he said the industry must begin preparing before fault-tolerant quantum computers become capable of challenging the cryptography protecting blockchain networks.

The announcement accompanied the launch of the Bitcoin Security Consortium, whose members include Coinbase, BlackRock, Fidelity Digital Assets, Block, Strategy, Anchorage Digital, ARK Invest, Blockstream and Galaxy.

Coinbase advances post-quantum custody systems

Armstrong said the timing of a capable quantum computer remains uncertain, making early preparation necessary. Coinbase established an Independent Advisory Board on Quantum Computing and Blockchain earlier this year to assess risks and recommend practical responses.

The board concluded that blockchain cryptography will require replacement. It identified migration as the greater difficulty, since millions of users and decentralized networks would need to coordinate upgrades across wallets, custody systems and protocol infrastructure.

Coinbase said its proprietary CoreKMS platform currently protects about 99.9% of the digital assets held in custody. The company has started developing PQ-CoreKMS, a post-quantum version of the key management system.

Within the next year, Coinbase plans to introduce an automated signing pipeline using secure enclaves, threshold cryptography and secret-sharing technology. The system will support post-quantum signature algorithms as blockchain networks adopt new standards.

The company is also reviewing cryptographic systems across its operations. Migration priorities are ranked by system importance, exposure and implementation complexity, with milestones intended to trigger future upgrades. Coinbase is separately evaluating how Ethereum’s post-quantum roadmap could affect Base, its Layer 2 network.

Bitcoin Security Consortium backs research funding

Coinbase will host a working session with Stanford in August, bringing together Bitcoin Core developers, cryptographers and researchers to examine practical migration strategies. The company said sessions will continue as technical work develops.

As a founding consortium member, Coinbase joined eight other organizations in committing $15 million over three years to developers, researchers and groups focused on Bitcoin security. Members will not direct Bitcoin development or protocol decisions. Instead, they will decide which security projects receive support.

Coinbase engineers will also participate in open-source work supporting proposals including BIP-360 and other post-quantum migration initiatives.

Industry support grows around long-term readiness

The consortium plans to publish information about Bitcoin security progress for investors and the public. BlackRock digital assets head Robert Mitchnick said Bitcoin Core developers are performing valuable work and that additional funding can support the network’s long-term security.

The participants did not disclose individual contributions or identify initial funding recipients. They also did not clarify whether Galaxy’s $5 million Quantum Spending Plan for quantum signatures, wallet migration and security audits forms part of the consortium’s combined commitment.

The post Bitcoin Quantum Security Gains Focus as Coinbase Launches $15M Consortium first appeared on Coinfea.

The dispute extends beyond social media since Base now handles a major share of on-chain stablecoin activity and secures $11.61 billion in total value, according to L2BEAT.

Coinbase also reported a record 8.6% share of global crypto trading volume in Q1 2026.

The debate emerged on X on July 18 after trader Rune spoke with Cobie, who recently took charge of the Coinbase Base application, about why users should choose the platform. 

Cobie acknowledged Coinbase has often been “a little bit in an ivory tower and a little bit distant from users,” particularly those focused on crypto-native activity.

Coinbase Admits Distance From Users

Rune described Coinbase as “a consumer app that doesn’t care about their consumers” and said recent events showed that “believing in anything @base-related for more than 24 hours is a mistake.” His posts received hundreds of likes, reflecting wider frustration within the broader community.

Cobie clarified that he leads the Base consumer app and Coinbase trading products, including the main Coinbase app and Advanced trading. He stressed that he does not run the Base blockchain.

Jesse Pollak remains responsible for Base network operations. On July 16, Pollak said he was handing the consumer app to Cobie so he could focus on Base, which he described as the biggest opportunity to build a blockchain for the global financial system.

Base Leadership Resets Product Strategy

The leadership change follows a difficult quarter. Pollak described the period as “a punch in the face” and outlined a renewed focus on trading, payments, and AI agents. 

He also acknowledged that Base’s move into social applications had not worked, leading the project to concentrate on areas with stronger long-term potential.

Coinbase CEO Brian Armstrong had already addressed the setback. On July 13, he said the company’s content coins project had failed, stating, “We have messed up, time to turn the page.” Armstrong added that Coinbase shifted away from the project earlier in the year and now prioritizes trading, payments, and AI agents.

Base Scale Raises Stakes for Coinbase

Coinbase reported in its Q1 2026 shareholder letter that Base handled 62% of global on-chain stablecoin transaction volume, exceeding the combined total of other blockchains. 

It also processed more than 90% of global on-chain volume tied to agentic stablecoins, while stablecoin trading volume on Base increased tenfold from a year earlier.

L2BEAT currently classifies Base as a Stage 1 optimistic rollup. However, the network may fall to Stage 0 in about 30 days as its proof system does not meet upcoming trusted-setup requirements. The governance review is separate from the ongoing public dispute.

The post Coinbase Trust Gap Deepens as Base Faces Crypto Community Backlash first appeared on Coinfea.

The São Paulo State Court rejected the company’s claim that self-custody removed its responsibility for unauthorized losses. 

Applying Brazil’s Consumer Protection Code, the court required Coinbase to prove the customer approved the disputed transfer.

Court Rejects Coinbase Self-Custody Defense

The investor, identified as Joubert, moved cryptocurrency from other exchanges into Coinbase’s wallet application. The assets later vanished without his prior authorization.

Coinbase argued that it did not hold the wallet’s private keys or control transactions recorded on the blockchain. 

Magistrate Ju Hyeon Lee ruled that the company still had to show Joubert authorized the transfer. Coinbase did not provide that proof.

The court also found that Coinbase failed to demonstrate basic security measures, including blocking tools and two-factor authentication. 

The judge criticized the company for submitting complex technical records without explaining them in language the court could understand.

Coinbase must repay the full amount, cover legal expenses, and pay court costs equal to 10% of the claim.

Ruling Tests Wallet Developer Liability

Digital law attorney Raphael Souza said the decision challenges two defenses used by cryptocurrency platforms and could shape wallet developer liability across Brazil.

The first is that makers of self-custody products carry no responsibility for user losses. “Anyone who develops and puts a product on the market is responsible for its security, regardless of how the technical architecture works behind it,” Souza said.

The second is that companies can submit highly technical documents and expect judges to interpret them without clear explanations.

Brazil’s Superior Court of Justice has held crypto platforms responsible for fraud when they cannot demonstrate adequate security. 

The central bank also classified virtual asset service providers as Type 3 institutions under Resolution 580/2026. From January 1, 2027, they will face rules applied to securities brokerages.

Brazil processed about $318 billion in crypto transactions from mid-2024 to mid-2025, making it one of the world’s largest cryptocurrency markets.

Coinbase Faces Wider Security Scrutiny

The ruling follows other fraud and security cases involving Coinbase users. In December 2025, on-chain investigator ZachXBT traced about $2 million in thefts to one scammer impersonating Coinbase support.

Brooklyn prosecutors charged a 23-year-old man with stealing $16 million from about 100 Coinbase users through impersonation calls.

Many scams followed a May 2025 breach in which bribed overseas support agents leaked customer data. Attackers demanded a $20 million ransom and threatened to publish records covering nearly 70,000 customers.

Chief executive Brian Armstrong said Coinbase directed the same $20 million toward a bounty instead. The company can appeal the São Paulo ruling or pay the ordered amount and fees.

The post Coinbase Faces $100K Liability in São Paulo Wallet Hack Lawsuit first appeared on Coinfea.