The cryptocurrency exchange Coinbase found itself at the center of a scandal after confirming a massive data breach affecting customers, resulting in the theft of tens of millions of dollars. According to RBC Crypto, the losses are estimated at up to $400 million. Criminals, having bribed customer support staff in India, gained access to personal data, including passport details and account balances. In response, the exchange fired those involved and initiated criminal cases.
Six class-action lawsuits have been filed against Coinbase in courts in California, New York, and Illinois. Customers accuse the exchange of negligence, hiding information, and violating the Biometric Information Privacy Act (BIPA) by processing selfies and documents without consent. Company's shares fell by 7% after news of the breach and SEC investigation into possible user data manipulation.
Coinbase promises to compensate the affected, but the exchange's reputation is at risk. The situation highlights the vulnerability of centralized platforms. Stay tuned for updates and subscribe to #MiningUpdates
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