Cryptocurrency giant Coinbase is facing a serious data breach scandal. According to a Reuters investigation, the exchange was aware of a major data leak as early as January 2025, yet only went public in May—after receiving a ransom threat.

The incident involved customer support agents from Indian-based outsourcing firm TaskUs, some of whom were allegedly bribed by hackers to leak user data. Coinbase now estimates the breach could cost the company up to $400 million, and it faces a federal lawsuit and regulatory scrutiny.

Internal Warnings Months Before Public Disclosure

Sources close to the matter revealed that Coinbase was alerted in January when a TaskUs employee in India was caught photographing sensitive data on a work computer using her personal phone. The employee and an alleged accomplice were bribed by hackers, who used the stolen data in social engineering attacks targeting Coinbase users.

Following the incident, over 200 TaskUs employees were let go from the Indore office, prompting local media attention. Yet Coinbase didn’t go public until May 11, after it received a $20 million ransom demand.

A Campaign Fueled by Outsourcing and Weak Security

Coinbase had long worked with Texas-based TaskUs to cut costs by offloading customer support to low-wage countries like India. Since 2017, TaskUs agents had been handling Coinbase customer queries, often earning just $500 to $700 a month—a low enough salary to make them vulnerable to bribery.

After the breach came to light, Coinbase cut ties with the affected TaskUs staff and other unnamed international vendors. The exchange said it had notified regulators, reimbursed affected users, and strengthened its internal controls.

Hackers Used Social Engineering to Scam Users

Coinbase wallets themselves weren’t hacked. Instead, attackers used stolen personal data to impersonate Coinbase support agents, convincing victims to voluntarily transfer their crypto assets. The scams were highly convincing, with attackers speaking fluent North American English.

The attack has been linked to a loosely organized group known as “Comm”, composed of young but skilled hackers. A Fortune report revealed that members had specialized roles: some bribed insiders, others executed the scams. The group used platforms like Telegram and Discord to coordinate and split the profits.

Coinbase Presses On Despite the Breach

Despite the severity of the incident, Coinbase continues to grow. The company was recently added to the S&P 500 index and has announced a strategic acquisition. CEO Brian Armstrong reaffirmed his vision to make Coinbase a global leader in financial services over the next decade.

A Broader Wake-Up Call for Crypto

According to Chainalysis, crypto-related hacks exceeded $2.2 billion in damages in 2024. The Coinbase case highlights the escalating risks of outsourcing and the growing sophistication of attackers in the world of digital finance.




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