Coinbase says customer data breach will cost it $400 million

By: bitcoin ethereum news|2025/05/15 19:15:05
0
Share
copy
Coinbase said on Thursday that it expects to lose between $180 million and $400 million after a cyberattack exposed customer information and triggered a nearly 3% drop in its stock. The statement came just four days after the company got an email from a threat actor on May 11, claiming access to internal documents and customer account data. The company confirmed the breach and blamed a targeted social engineering scheme. According to Reuters , some data like names, email addresses, and home addresses were stolen, but login credentials and passwords were not compromised. Still, Coinbase said it will reimburse users who were tricked into sending crypto to the attacker. The exchange also said it has already started working with law enforcement agencies. Coinbase confirms insider involvement and responds with firings and new security moves Coinbase reported that the attackers had paid contractors and employees based outside the US to help carry out the breach. These people were in support roles, not developers or executives. Every single one of them has now been terminated, and the company is tightening up internal vetting procedures. The breach landed just as Coinbase is preparing to be added to the S&P 500, a major benchmark index in traditional finance. But the timing has turned awkward, as trust and security questions come up right before what was supposed to be a big moment for the crypto exchange. Bo Pei, who is an analyst at US Tiger Securities, said the breach “may push the industry to adopt stricter employee vetting and introduce some reputational risks.” The issue isn’t just bad press—it’s showing how internal access can be a bigger weakness than external hacks. Coinbase refused to pay a $20 million ransom the hacker demanded after contacting the company. Instead, it offered a $20 million reward to anyone who can help identify the individuals or group behind the attack. The company is betting on public cooperation rather than negotiation. The event comes in the middle of a rough time for crypto security. Back in February, Bybit, another exchange, confirmed a $1.5 billion theft, one of the largest crypto hacks to date. Chainalysis reported that $2.2 billion was stolen from crypto platforms just in 2024 alone. Nick Jones, who runs crypto firm Zumo, said, “As our nascent industry grows rapidly, it draws the eye of bad actors, who are becoming increasingly sophisticated in the scope of their attacks.” That includes targeting staff, not just servers. Coinbase also announced it’s opening a new support center in the US, part of its plan to reduce reliance on offshore personnel and tighten security practices across the board. Cryptopolitan Academy: Coming Soon – A New Way to Earn Passive Income with DeFi in 2025. Learn More Source: https://www.cryptopolitan.com/coinbase-data-breach-will-cost-400-million/

You may also like

Former ByteDance employee's account: How I started with two Pinduoduo hard drives and made six times the profit with Seagate to achieve financial freedom?

A programmer from a big tech company bought hard drives on Pinduoduo and, following clues, managed to accurately capture the sixfold rising stock Seagate using the "finding daily anomalies + 13F institutional verification" framework, making a wild profit of $400,000 and achieving financial freedom.

Visa and Mastercard join 140 giants to launch a new stablecoin, but the impact on the market landscape may still be limited

As an important milestone event in the stablecoin landscape, OUSD is likely to change the existing stablecoin landscape and significantly increase the adoption rate of stablecoins in the global financial system.

WEEX Launches Depth Chart for Spot Trading

WEEX Spot now supports Depth Chart, helping users visualize buy and sell orders, spot liquidity walls, and understand market depth more clearly before placing trades.

MiCA reshuffle begins, Binance temporarily bids farewell to the EU

What Binance leaves behind is not scattered retail investors, but a whole batch of high-value users who are forced to liquidate and have almost nowhere to go.

Raising interest rates to protect STRC and selling coins to maintain credit, this time the strategy has chosen the two most expensive paths

The rebound in BTC prices can make all problems simple.

Morning Report | Samsung announces a 265.5 trillion won investment plan, focusing on semiconductor and AI computing power data centers; Vitalik publishes an article detailing the entire technology tree behind the confusion protocol (iO) mainline

Overview of Important Market Events on June 29

Popular coins

Latest Crypto News

Read more
iconiconiconiconiconiconicon
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com