Crypto exchange giant, Coinbase, discloses $307 million as the expense incurred due to a data breach in the second quarter.

In a recent earnings report, Coinbase, the leading cryptocurrency exchange, revealed its financial performance for the second quarter of 2025. Despite facing a significant data breach and a dip in shares, the company reported impressive growth in certain areas.

The data breach, which occurred in May 2025, cost Coinbase US$307 million during the second quarter. The breach was attributed to cyber criminals who bribed offshore customer service representatives to gain unauthorized access to sensitive data. This incident, however, did not deter the company from making strides in other areas.

Trading volumes for the quarter reached an impressive US$237 billion, marking a significant increase from US$226 billion in the same quarter last year. This growth in trading volumes contributed to Coinbase's net income, which stood at US$1.43 billion for Q2 2025.

However, the company reported a 26% decrease in total revenue during the same period. Transaction revenue specifically experienced a 39% decline, with cryptocurrency spot volumes decreasing by over 30% compared to the previous quarter.

Despite these challenges, Coinbase's shares are still up more than 40% year to date. Following the earnings report, Coinbase shares experienced a decline of over 3% in after-hours trading, with the last traded price standing at US$363.80.

It's important to note that the reported net income is a revised estimate from an earlier projection of US$400 million. The company has been working diligently to mitigate the impact of the data breach and ensure the security of its users' data moving forward.

A criminal group gained access to sensitive data at Coinbase by bribing customer service employees abroad during the period from 2021 to 2023. This represents an increase from US$66 million in the previous quarter and US$36 million during the same period last year.

Coinbase continues to be a significant player in the cryptocurrency market, navigating challenges and capitalising on opportunities. The company's resilience in the face of adversity underscores its commitment to its users and the broader cryptocurrency community.

Crypto exchange giant, Coinbase, discloses $307 million as the expense incurred due to a data breach in the second quarter.