Crypto investor Ari Paul is accusing Coinbase of mishandling customer funds amid claims of massive hack cover-ups.

Paul accuses the crypto exchange of losing $25 million of his firm’s assets while covering up repeated incidents amounting to nine figures involving a number of other firms.

“Coinbase ‘lost’ $25m of my firm’s a couple years ago. Turned out they were actually covering up massive and repeated hacks. Still wouldn’t return our money. We traced this to at least a dozen other affected firms and over $1b covered up. That’s all I can say for now, as multiple legal processes are still ongoing.”

He stresses having no long or short position in Coinbase equity and no vendetta while remaining heavily long crypto overall.

“Coinbase has represented to investors and customers (including pensions doing official due diligence) that they were never hacked (at least as of 2 years ago, last I checked). Not only is that radically false, Coinbase has shockingly extensive internal documentation of them knowingly ‘misleading’ customers and investors about this, deliberately, over time.

I used the word ‘misleading,’ but I’m being…gentle. Grok what is the legal term for a financial company inducing customers and investors to give them capital on the basis of deliberately false material financial representations?”

Coinbase says it has reached out to Paul via a direct message.

“We just sent you a DM, so we can look into this right now with you. Follow up with us here when you get a chance.”