A partner at one of Silicon Valley’s most prominent venture firms has reportedly been caught in the fallout of Coinbase’s recent data breach, raising concerns that other high-profile investors may also be at risk.
According to a May 16 report from Bloomberg, Roelof Botha, Managing Partner at Sequoia Capital, was among the victims whose personal information was compromised.
The breach, which targeted Coinbase users through a social engineering campaign, allegedly stemmed from a bribery scheme involving customer service agents contracted by the exchange.
Botha Manages Assets Worth Hundreds of Millions
While Botha’s personal holdings remain undisclosed, he is believed to manage assets worth hundreds of millions.
Coinbase confirmed the incident in a May 15 blog post, stating that cybercriminals had gained access to customer data by exploiting internal support systems.
The attackers reportedly demanded a $20 million ransom, which Coinbase refused. The full scope of the breach remains unclear.
Security teams at Kraken and Binance are also investigating similar intrusion attempts, Bloomberg reported, although neither exchange has publicly confirmed exposure.
Philip Martin, Coinbase’s Chief Security Officer, revealed that the compromised support staff were based in India and have since been terminated.
The company has filed a disclosure with the U.S. Securities and Exchange Commission, estimating remediation costs between $180 million and $400 million.
The breach hit Coinbase’s stock hard, with shares (COIN) dropping over 7% to $244 before recovering slightly to $264.24.
Meanwhile, Coinbase CEO Brian Armstrong was seen in Washington, D.C., engaging with lawmakers as Congress debates two key pieces of crypto legislation — one on stablecoins and another on digital asset market structure.
The breach comes at a critical moment for the crypto industry’s regulatory outlook and could influence legislative sentiment as the bills move toward a vote.
Coinbase Q1 Revenue Climbs, But Profit Falls 94%
Coinbase reported mixed first-quarter results, with revenue rising 24% year-over-year to $2 billion, but falling short of analyst expectations and down 10% from the previous quarter.
While transaction revenue grew to $1.26 billion, its subscription and services division—covering staking and custodial offerings—rose 37% to nearly $700 million, reflecting growing diversification beyond trading.
Despite the revenue uptick, net income plunged 94% to $66 million as the company marked down its crypto holdings amid market volatility.
Adjusted earnings stood at $526.6 million, or $1.94 per share, still below last year’s figure of $2.53. Operating expenses surged 51% to $1.3 billion due to aggressive marketing and asset write-downs.
Coinbase’s earnings were weighed down by unpredictable macroeconomic conditions and fluctuations in digital asset prices.
However, the company noted its second-highest ever monthly user count, with CFO Alesia Haas highlighting increased engagement across non-trading services.
The post Sequoia Partner Caught in Coinbase Data Breach, More VCs May Be Affected appeared first on Cryptonews.
