In May 2025, Coinbase experienced a significant data breach where cyber criminals stole customer names, email addresses, phone numbers, and the last four digits of Social Security numbers. The company anticipates reimbursing affected customers between $180 million and $400 million and has launched a $20 million bounty to identify the perpetrators.

The breach was orchestrated by a group of rogue support agents who were bribed to access sensitive customer data. This incident has raised serious concerns about internal security protocols, leading to the immediate termination of the involved staff and the involvement of law enforcement for further investigation.

Coinbase confirmed that the breach affected less than 1% of its user base, which translates to a small fraction of its over 100 million customers. Importantly, no passwords or funds were compromised, and the company has implemented enhanced security measures to prevent future incidents. These measures include the establishment of a new customer support hub in the U.S. and improved insider threat detection systems.

The attackers attempted to exploit the stolen information for social engineering scams, impersonating Coinbase to trick users into sending funds. In response, Coinbase has committed to reimbursing any customers who were deceived into transferring money due to the breach.

CEO Brian Armstrong emphasized the company's determination to prosecute the criminals involved and to protect its customers. The breach not only highlights vulnerabilities within the organization but also underscores the ongoing challenges faced by cryptocurrency exchanges in safeguarding user data against increasingly sophisticated cyber threats.#Write2Earn #coinbase $BTC