By Isaac • October 20, 2026 11:18 pm •
A public fight over alleged Coinbase losses has exposed a problem bigger than the claims themselves: many companies still cannot independently prove who controls their Bitcoin, who can move it or what happens when something goes wrong.
BlockTower Capital founder Ari Paul alleged that Coinbase lost roughly $25 million belonging to his firm and concealed more than $1 billion in losses affecting multiple institutions. Paul has not released evidence supporting those allegations, saying legal proceedings limit what he can disclose.
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Coinbase denies hiding hacks or losing $1 billion.
That unresolved dispute is the starting point for a broader custody argument laid out by CoinDesk. If outsiders cannot inspect the evidence, boards are pushed back toward the
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