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Coinbase reignites debate on KYC after massive hack
Date of the attack: May 16, 2025
Estimated reading time: 6 minutes
Author: Luc Jose A.
Key facts:
Cyberattack on Coinbase: A group of cybercriminals bribed external customer service employees to gain access to sensitive user data.
Exposed information: Names, addresses, emails, phone numbers, identification documents, bank details, and account balances.
Extortion: The attackers demanded 20 million dollars in bitcoin and threatened to disclose the information.
Response from Coinbase: Refused to pay the ransom, offers a reward for leads, and collaborates with the Department of Justice.
Consequences:
Physical risk: Michael Arrington (TechCrunch) claims that this leak “will cause deaths” due to the risk of assaults on individuals identified as holders of crypto assets.
Recent cases: The kidnapping of the co-founder of Ledger and the assault on influencer Amouranth show that the threat is real.
Debate on KYC:
The security breach reopens the debate on the obligation to collect personal data (KYC).
Conflicting positions:
Some blame the platforms for not protecting the data.
Others criticize the laws that require collecting it.
Balaji Srinivasan suggests replacing KYC with zero-knowledge technologies (ZK).
Conclusion:
The incident not only generates financial and personal security consequences but could also mark a turning point in cryptocurrency regulation. The tension between privacy, regulation, and security is more alive than ever.
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