Coinbase Faces Major Data Breach: Insider Bribery Leads to Theft of Customer Information
On May 15, 2025, Coinbase, the largest cryptocurrency exchange in the United States, disclosed a significant data breach involving the theft of sensitive customer information. The breach was facilitated by bribed overseas customer support contractors who provided unauthorized access to internal systems.
Details of the Breach
The compromised data includes:
- Full names
- Postal and email addresses
- Phone numbers
- Partial Social Security numbers
- Masked bank account numbers and banking identifiers
- Government-issued ID documents (e.g., driver’s licenses, passports)
- Account balances and transaction histories
Note: Passwords, private keys, or direct access to customer funds were not compromised.
Ransom Demand and Company Response
The attackers demanded a $20 million ransom in exchange for not releasing the stolen data. Coinbase refused to comply and instead offered a $20 million reward for information leading to the identification and prosecution of the hackers.
Financial Impact and Security Measures
Coinbase estimates that the total financial impact—including security upgrades, legal actions, and customer compensation—could range from $180 million to $400 million.
Actions taken by Coinbase:
- Terminated the involved contractors
- Enhanced system monitoring and protections
- Announced a new customer support center in the U.S.
- Cooperated with international law enforcement agencies
Despite the breach, Coinbase is still scheduled to be listed on the S&P 500—a notable milestone for the crypto giant.
Broader Implications
This incident highlights the increasing cyber threats targeting the cryptocurrency sector. In 2024 alone, crypto-related breaches resulted in over $2.2 billion in stolen assets. The Coinbase case emphasizes the urgent need for stronger cybersecurity and internal fraud prevention mechanisms in Web3 companies.
Sources:
Stay tuned to our blog for more cybersecurity news and crypto industry updates.
0 Comments
Welcome