Core Insights - Coinbase reported a significant security breach involving network criminals bribing overseas support staff to steal customer data for social engineering attacks [1] - The estimated cost to remediate this incident could reach up to $400 million [1] - The breach was disclosed in a filing to the U.S. Securities and Exchange Commission (SEC), indicating that sensitive customer account information and internal documents were compromised [1] Company Summary - On May 11, Coinbase received an email claiming that certain customer account information and other internal documents had been accessed [1] - The compromised materials included information related to customer service and account management systems [1]

Group 1 - Coinbase experienced a significant decline, with an intraday drop exceeding 8.3% [1] - The U.S. Securities and Exchange Commission (SEC) is investigating Coinbase for potentially misreporting user data [1] - The investigation by the SEC was initiated during the tenure of former President Biden [1]

Group 1 - Coinbase reported total revenue of $2.03 billion for the first quarter, below analyst expectations of $2.11 billion [1] - Adjusted EBITDA for the first quarter was $929.9 million, compared to analyst expectations of $971.1 million [2] - Trading revenue for the first quarter was $1.3 billion, slightly below the expected $1.33 billion [2] Group 2 - Subscription and services revenue for the first quarter was $698 million, also falling short of the anticipated $702.5 million [2] - The company expects subscription and services revenue for the second quarter to be between $600 million and $680 million [2] - Following the earnings report, Coinbase's stock fell by 3.39% in after-hours trading [3]