Coinbase extorted $20M due to internal data leak
Coinbase confirms that a group of hackers bribed an international support staff member of the exchange, stealing personal customer data including names, addresses, identification photos… and then demanded $20M to keep it quiet.
Instead of meeting the extortion demand, Coinbase announced a reward of $20M for anyone who provides information that helps bring the perpetrators to justice. The exchange also reassured that the incident only affects less than 1% of monthly trading users, with no passwords, private keys, or customer funds compromised, and Prime accounts remain safe.
In a filing to regulators, Coinbase estimated that the cost of resolving the incident could reach $180M–$400M. The exchange is committed to compensating 100% of damages and will enhance security to prevent similar incidents.