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The Crypto Brief, Oct. 28: Coinbase's Leak Grows

Coinbase called its vendor breach a small subset of users, hours before a researcher counted more than 70,000, and nine more stories follow.

Published by CryptoLately on 5 min read · 13 sources
Michael Novogratz, chief executive of Galaxy Digital, on the MoneyConf stage during RISE 2018 in Hong Kong on July 11, 2018
Michael Novogratz, chief executive of Galaxy Digital, on the MoneyConf stage during RISE 2018 in Hong Kong on July 11, 2018. Photo: RISE / Wikimedia Commons, CC BY 2.0
“"A small subset" is what Coinbase called Oct. 27, 2026's leak, hours before a named researcher counted more than 70,000 affected customers [1][4]. Has Coinbase's own count missed the number again?”

Coinbase picked its words with care on Oct. 27, 20261. A vendor breach touched a small subset of customers, the exchange said. Hours later, a security researcher called that count short. 23pds put the number past 70,0003. The split between the two counts echoes Coinbase's last breach, an up-to-$400-million lesson from May 20252. Ten stories from Oct. 26 to Oct. 28, 2026, follow. A disputed leak opens the list. Circle's Colombia pilot closes it.

A Vendor Breach Splits Into Two Counts

Coinbase's support account posted the exchange's defense on Oct. 27, 20261. “Amplitude, an analytics vendor, experienced a security incident which impacted a small subset of Coinbase customer contact data, among other Amplitude customers,” the account wrote. Coinbase found zero sign that outsiders reached its own systems. Customer funds stayed untouched, it said. Contact details and limited transaction data left through the vendor. An account itself stayed out of reach, the exchange said.

23pds disagreed within hours3. He serves as chief information security officer at SlowMist, a blockchain security firm. His own count put the number above 70,000 affected users. Coin Bureau repeated that figure for its own followers on X. “Hackers have allegedly accessed contact information belonging to more than 70,000 Coinbase users,” Coin Bureau wrote4.

This pattern played out once already, in May 20252. Coinbase notified 69,461 customers after bribed support staff leaked their data in May 2025. Fixing it then cost the exchange as much as $400 million. Contact details carried both breaches. Funds stayed out of reach each time.

Galaxy Digital Swings Back to a Profit

Net income reached $323 million for the third quarter of 20265. A quarter earlier, the firm had logged an $85 million loss. Adjusted gross profit reached $569 million. Its adjusted EBITDA hit $455 million, against $43 million the quarter before. The board authorized a fresh $200 million share buyback on top of $200 million already spent this year.

Galaxy Digital Swings to a $323 Million Profit in the Third Quarter of 2026

Net income by quarter, in millions of U.S. dollars, second quarter versus third quarter of 2026

    Source: The Block [5].

    Read the chart as a table
    ItemValue
    Second quarter−$85M
    Third quarter$323M

    Chief executive Mike Novogratz named three reasons behind the swing. “Galaxy delivered a strong third quarter, reflecting the strength of our established Digital Assets franchise, significant appreciation across our investments portfolio, and the growing contribution from our Data Centers business,” Novogratz said. Galaxy's data centers alone added $79 million in adjusted gross profit. Its average loan book grew 27%, to $1.8 billion.

    Robinhood's Crypto Line Keeps Shrinking

    Vlad Tenev's Robinhood posted record revenue for the third quarter of 20266. Revenue reached $1.4 billion that quarter, up 12% from a year earlier. Its crypto line told a different story. That line fell 55%, to $120 million. Trading volume in crypto dropped 38%, to $50 billion. Event contracts, its prediction bets, pulled in $173 million, six times its year-ago total. Prediction markets now earn more than crypto trading does at Robinhood. Shares fell 8.7% the next morning.

    Vlad Tenev speaking onstage at a conference
    Photo 1Vlad Tenev, Robinhood's co-founder and chief executive, speaks at TechCrunch Disrupt NY on May 10, 2016. Robinhood's crypto transaction revenue fell 55% in the third quarter of 2026 even as the brokerage posted record overall revenue.TechCrunch / Wikimedia Commons, CC BY 2.0

    A Wallet Fix Comes After a Theft

    Electrum shipped version 4.8.3 on Oct. 24, 20267. The update closes a flaw that let a bad server swap a real bitcoin payment for one routed to an attacker. Two users had already reported stolen funds before the patch landed. “This release fixes a critical security issue, so we urge all users to upgrade,” Electrum posted on X. The flaw hid inside Replace-By-Fee, the feature wallets use to raise a stuck transaction's fee.

    A Miner Raises Cash to Chase AI

    Luxor closed a $16 million funding round on Oct. 27, 2026, led by CMT Digital8. Canaan, MicroBT, Halo and Steelhead joined as new investors. Co-founder and chief executive Nick Hansen named the shift reshaping his industry. “Compute markets are converging: the same miners, power sites and capital that served digital mining are now powering AI,” Hansen said. Chief operating officer Ethan Vera split the round's purpose in two. “Primary was used to drive growth in the company, and secondary was used to bring new strategics into the round,” Vera said. Luxor plans to hire about 12 more people by year's end.

    An Antminer S9 bitcoin mining rig with its case open, showing its ASIC processor boards
    Photo 2An Antminer S9, the kind of bitcoin-mining ASIC hardware that hosting firms like Luxor service. Luxor raised $16 million on Oct. 27, 2026, to expand into AI compute alongside its mining business.Steve Rainwater from Irving, US / Wikimedia Commons, CC BY-SA 2.0

    A Nasdaq Company Loses Access to Its Bitcoin

    Datavault AI's stock fell 49.6% on Oct. 27, 2026, closing at 6.7 cents a share9. Chief executive Nathaniel Bradley's company disclosed that its bitcoin, 1,328.43 coins worth about $150 million, sits locked in a wallet Biconomy Pte. Ltd. controls. Datavault AI first asked to withdraw the coins in June 2026. Trading volume on Oct. 27 ran eight times its usual pace, at 250 million shares. Datavault AI already sold a slice of the holding back to Scilex for roughly $40.5 million between September 2025 and January 2026.

    Kraken Clears a Step Into Kazakhstan

    Kraken's parent, Payward, won in-principle approval from the Astana Financial Services Authority on Oct. 27, 202610. Co-chief executive David Ripley also signed a deal with Kazakhstan's digital ministry. Final licensing still waits ahead. Six platforms with zero license, Coinbase among them, had already lost access to Kazakhstan days earlier, after an AIFC court order.

    A street sign in Astana, Kazakhstan
    Photo 3A street sign in Astana, Kazakhstan, the capital where the Astana Financial Services Authority is based. The regulator gave Kraken's parent, Payward, in-principle approval to enter the country on Oct. 27, 2026.Bgag / Wikimedia Commons, CC0

    Binance Files Before Brazil's Deadline

    The exchange filed for a license with Brazil's central bank on Oct. 23, 2026, through its local unit, BBrasil11. Brazil's Oct. 30 deadline requires every existing crypto platform to apply or stop serving Brazilian customers. Binance delisted 22 tokens for Brazilian accounts on Oct. 27, limiting loans, margin trading and cloud mining too. The filing opens a review, with zero promise of approval.

    The Central Bank of Brazil's headquarters tower in Brasília
    Photo 4The Central Bank of Brazil's headquarters in Brasília. Binance filed for a license there on Oct. 23, 2026, ahead of the regulator's Oct. 30 deadline for crypto platforms.Banco Central do Brasil / Wikimedia Commons, CC BY 2.0

    Europe's Euro Trade Picks a New Stablecoin

    USDC's share of stablecoin trading against the euro reached 56% in October 2026, Kaiko's data shows12. That share stood at just 10% in January 2024. The European Union's Markets in Crypto-Assets Regulation, called MiCA, drove the swing. USDT skipped a MiCA license, so exchanges across the bloc began limiting or delisting it. USDC's euro order books now run about 40% deeper than USDT's, meaning a euro trade moves its price less.

    USDC's Share of Euro Stablecoin Trading Climbs to 56% by October 2026

    USDC's percentage of all stablecoin trading against the euro, January 2024 versus October 2026

    • January 2024
    • October 2026

      Source: Cointelegraph [12].

      Read the chart as a table
      ItemJanuary 2024October 2026
      USDC's share of euro trading10%56%
      The European Central Bank's headquarters tower in Frankfurt, Germany
      Photo 5The European Central Bank's headquarters in Frankfurt, Germany. The European Union's MiCA rules, enforced across the bloc, pushed USDC's share of euro stablecoin trading past USDT's in October 2026.Thomas Wolf , www.foto-tw.de / Wikimedia Commons, CC BY-SA 3.0 de

      A Bank Pilot Tests Stablecoins in Colombia

      Circle and ACI Worldwide announced a pilot on Oct. 27, 2026, to test USDC settlement inside Colombia's own payment system13. The pilot runs on Bre-B, Colombia's own instant-payments network. Bre-B moved more than 500 million payments in its first five months. ACI's global head of account-to-account payments, Craig Ramsey, called the moment a turn toward use. Both companies left a settlement date, a bank's name and Bre-B's own USDC volume unannounced.

      What to watch

      Watch whether Coinbase names a firmer count for Amplitude's breach, or whether 23pds's figure stands as the only one on record. Galaxy Digital's data-center buildout and Robinhood's prediction-market growth will show whether either line can keep outrunning crypto trading through the next quarter. Kraken's full Kazakhstan license and Binance's Brazil review will mark two regulators' next word on who gets to operate inside their borders. Watch Circle's Colombia pilot for its first bank partner and its first real transaction.

      Sources

      1. "Coinbase Ties Customer Contact Data Exposure to Vendor Amplitude, Says It Was Not Breached," Unchained, Oct. 28, 2026, https://unchainedcrypto.com/coinbase-ties-customer-contact-data-exposure-to-vendor-amplitude-says-it-was-not-breached/
      2. "Coinbase Customer Data Hit in Analytics Vendor Breach, Funds 'Not Impacted'," Decrypt, Oct. 28, 2026, https://decrypt.co/382009/coinbase-customer-data-hit-in-analytics-vendor-breach-funds-not-impacted
      3. "Amplitude incident exposes contact data of some Coinbase users," Cryptopolitan, Oct. 28, 2026, https://www.cryptopolitan.com/amplitude-incident-coinbase-contact-data/
      4. Coin Bureau, post on X, Oct. 28, 2026, https://x.com/coinbureau/status/2115300023550328953
      5. "Galaxy Digital swings to $323 million quarterly profit, announces new $200 million share buyback," The Block, Oct. 27, 2026, https://www.theblock.co/news/business/2026-10-27-galaxy-digital-323-million-quarterly-profit-new-200-million-share-buyback-431860
      6. "Robinhood (HOOD) earnings: Crypto revenue slumps, but tops diminished forecasts," CoinDesk, Oct. 27, 2026, https://www.coindesk.com/markets/2026/10/27/robinhood-s-crypto-revenue-plunges-55-even-as-trading-platform-posts-record-sales
      7. "Electrum 4.8.3 Patches Actively Exploited RBF Fee-Bump Theft Flaw," TFTC, Oct. 26, 2026, https://www.tftc.io/electrum-4-8-3-rbf-fee-bump-exploit-patch/
      8. "Bitcoin mining infrastructure firm Luxor raises $16 million to expand AI business," The Block, Oct. 27, 2026, https://www.theblock.co/news/deals/2026-10-27-bitcoin-mining-ai-luxor-technology-funding-431858
      9. "Datavault AI stock plummets 50% after firm says it cannot withdraw bitcoin tied to $150 million deal," The Block, Oct. 27, 2026, https://www.theblock.co/news/business/2026-10-27-datavault-ai-stock-plummets-bitcoin-deal-431962
      10. "Kraken crypto exchange prepares to enter Kazakhstan's market," Kursiv Media, Oct. 27, 2026, https://kz.kursiv.media/en/2026-10-27/engk-tank-kraken-crypto-exchange-prepares-to-enter-kazakhstans-market/
      11. "Binance Files for Brazil Crypto License Ahead of Deadline," Cointelegraph, Oct. 27, 2026, https://cointelegraph.com/news/binance-brazil-crypto-license-oct-30-deadline
      12. "USDC Overtakes USDT in Euro Stablecoin Trading as MiCA Rules Take Hold," Cointelegraph, Oct. 27, 2026, https://cointelegraph.com/news/usdc-overtakes-usdt-euro-stablecoin-trading-mica-kaiko
      13. "Circle, ACI Worldwide to test USDC settlement in Colombia's banking system," crypto.news, Oct. 27, 2026, https://crypto.news/circle-aci-worldwide-usdc-settlement-colombia/

      Cite this piece

      Ryan Elliott Dennis, "The Crypto Brief, Oct. 28: Coinbase's Leak Grows," CryptoLately, Oct 28, 2026, https://cryptolately.com/articles/the-crypto-brief-oct-28

      Tags: Coinbase · Amplitude · Galaxy Digital · Robinhood · Electrum · Luxor · Kraken · Kazakhstan · Binance · USDC

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