Coinbase Hack Before S&P 500 Listing on May 19: What it Hints?

Coinbase Hacked, SEC Probe, S&P 500 Listing Strike: Accident or Agenda

Coinbase, one of the world’s biggest cryptocurrency exchanges, has found itself in the middle of a storm. Right before its upcoming inclusion in the S&P 500 index, the platform was hit by a serious cyberattack, and the SEC has also restarted an investigation related to its user data. All this has left investors confused, worried, and asking — what’s really going on?

Coinbase Hacked, SEC Probe, and S&P 500 Listing: All at Once

On May 16, the crypto community was shocked when news broke about a cyberattack. Hackers reportedly bribed and used rogue support agents from overseas to steal personal data of less than 1% of the exchange’s users. However, the company confirmed that no passwords, private keys, or funds were stolen, and prime accounts remain safe.

Source: X

• The exchange refused to pay the $20 million ransom demanded by the attackers.

• Instead, they announced a $20 million reward fund to help catch the criminals.

• The hack could cost the exchange nearly $400 million.

At the same time, a fresh update came from The New York Times that the SEC has reopened its investigation into the platform. This probe, which started under the Biden administration, is now focused on whether it gave false or misleading information about its user base. The company previously claimed to have over 100 million verified users but stopped using that figure in 2023.

Interestingly, all this happened right before Coinbase S&P 500 listing which is set for May 19. Despite all the controversy, the exchange has not delayed or canceled the listing.

COIN Stock Price Surge and Drop: A Pump and Dump Game?

Coinbase stock price (COIN) saw a massive jump after the S&P 500 announcement on May 13. The stock rose by 28% in 2 days from $208 to $264. Many investors believed this was a sign of strong future growth, and confidence in the platform grew.

Source: TradingView

After the SEC's investing probe, the exchange faced another major casualty. As per the official tweet, the exchange was hacked, and the hacker demanded a $20 million ransom to delete it. Following this, COIN stock dropped nearly 8%, currently trading at $244. The market cap now stands at $62.26 billion.

This sequence of events has raised questions: Did it pump its stock value ahead of the hack? Was the S&P listing announcement a distraction? Or was this just an unfortunate coincidence? Some are even questioning if the SEC already had some knowledge of the upcoming cyberattack.

Will Coinbase Join S&P 500 Now?

So far, Coinbase has made no changes to its planned S&P 500 debut. The listing continues on May 19. The exchange is also demonstrating seriousness in addressing the hack by declaring a $20 million reward pool and committing to reimbursing hit users.

This means the exchange is dedicated to recovery and transparency and that there has not been an official connection made between the hack and any possible SEC or the platform insider involvement.

As things stand now, Coinbase is ready to move forward with its S&P 500 listing.

WazirX, Bybit, and Now Coinbase: Is the Crypto Exchange Safe?

• In July 2024, Indian crypto platform WazirX was hacked, losing around $234.9 million.

• In February 2025, Bybit in Dubai lost a staggering $1.5 billion in a security breach.

• And today, Coinbase lost approximately $400 million.

These consecutive events are sending shivers to investors and shattering their confidence in the crypto market. Although affected exchanges are refunding and beefing up defenses, harm to investor confidence takes time to recover.

Conclusion

Coinbase is facing one of the toughest weeks in its history. A major hack, a renewed SEC investigation, and an S&P 500 listing — all at the same time. The rise and fall of its stock price also raises questions about the timing of these events. Whether it’s a coincidence or a planned distraction, only time will tell.