The cryptocurrency exchange Coinbase
$708.28M
was recently targeted in a scheme where attackers tried to extort $20 million after gaining access to some internal tools.
According to the company, several overseas support contractors were bribed by outsiders to leak limited customer data.
In a blog post published on May 15, Coinbase explained that the attackers convinced a few support agents to misuse their access and retrieve information from a small number of user accounts.
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No login credentials, private keys, funds, or Prime accounts were exposed. The company said that less than 1% of active monthly users were affected.
After collecting the stolen data, the group demanded $20 million worth of Bitcoin
$102,726.74
to keep the breach private. However, Coinbase offered a $20 million reward for information that could help identify and convict the individuals involved.
Coinbase said it plans to refund those users, and estimated that the total cost of reimbursements and other related actions could reach between $180 million and $400 million. The financial estimate was shared in a filing with the US Securities and Exchange Commission (SEC), where Coinbase described the costs as part of a “voluntary reimbursement” effort.
Coinbase CEO Brian Armstrong stated in a post on X that the attackers had been contacting support staff abroad for several months by offering money in exchange for customer data.
In response, Coinbase plans to improve how it handles customer data and move parts of its support operations to new locations.
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Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
