The U.S. Department of Justice (DOJ) has initiated a criminal investigation into a recent cyberattack on Coinbase, the largest cryptocurrency exchange in the United States. The breach involved bribed overseas customer support contractors who misused their access to internal systems to steal sensitive customer data. While no passwords or funds were compromised, the attackers obtained personal information such as names, addresses, and email addresses.
The hackers demanded a $20 million ransom in Bitcoin to prevent the release of the stolen data. Coinbase refused to pay and instead offered a $20 million reward for information leading to the arrest and conviction of the perpetrators. The company estimates the financial impact of the breach to be between $180 million and $400 million, accounting for remediation efforts and customer reimbursements.
Coinbase is cooperating fully with U.S. and international law enforcement agencies in the ongoing investigation. The DOJ's probe focuses on the criminal actors behind the breach, not Coinbase itself.
This incident underscores the growing cybersecurity challenges faced by the cryptocurrency industry and the importance of robust internal controls and employee vetting processes.
