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'Major Wake-Up Call': How $400M Coinbase Breach Exposes Crypto's Dark Side

  • On December 26, 2024, Coinbase experienced a data breach affecting 69,461 users through bribed overseas support staff.
  • The breach remained undiscovered until May 11, 2025, and involved insider wrongdoing where employees gave up sensitive customer data.
  • The stolen data included names, addresses, phone numbers, government ID images, account balances, and transaction histories, leading to an extortion demand of $20 million.
  • Coinbase publicly acknowledged the attack in an SEC filing on May 15 and committed to reimbursing customers with remediation costs estimated between $180 million and $400 million.
  • The breach heightened concerns about crypto security, prompting Coinbase to offer a $20 million reward for information and to provide affected users identity protection services.
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Cointelegraph broke the news in on Tuesday, May 20, 2025.
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