Coinbase Breach Exposes Data, Spurs $400M Response

Coinbase, the largest U.S. cryptocurrency exchange, suffered a major data breach after cybercriminals bribed overseas support agents to steal sensitive information from about 1% of users, including names, addresses, contact details, masked Social Security and bank account numbers, and ID images. No passwords, private keys, or customer funds were directly accessed, but some users lost money through related social engineering scams and will be fully reimbursed. The attackers demanded a $20 million ransom, which Coinbase refused, instead offering a matching bounty for information leading to their arrest. Coinbase has fired the involved employees, is cooperating with law enforcement, and has introduced stricter security measures, including enhanced ID verification and a new U.S. support hub. The breach is expected to cost Coinbase between $180 million and $400 million. The incident also caused volatility in crypto markets and highlighted the risks of insider threats and cybercrime.