After Coinbase Hack, Experts Warn: It’s Not Just Data at Risk

A data breach at Coinbase has triggered serious concerns after attackers accessed private user details—including home addresses—by bribing outsourced customer support staff.

Though only a small fraction of users were affected, the risks extend well beyond financial loss.

The breach, which could cost Coinbase up to $400 million in reimbursements, compromised sensitive user info without exposing passwords or funds. However, experts warn that such leaks drastically increase the threat of social engineering attacks and even physical violence.

Investor and entrepreneur Michael Arrington criticized Coinbase’s reliance on low-cost support, warning that leaked address and balance data could endanger lives. “This isn’t just bad for business—it’s deadly,” he said on X.

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The threat is far from theoretical. Earlier this month, a French crypto investor’s father was kidnapped and tortured by criminals demanding a €5 million crypto ransom. He was rescued after two days, but the message is clear: public crypto exposure can invite real-world danger.

CertiK reports that social engineering attacks—like phishing and extortion—have caused over $1 billion in losses this year. Its co-founder, Ronghui Gu, says exchanges need to overhaul their approach, shifting from tech-only solutions to layered defenses that also consider human vulnerabilities.

As digital assets rise in value, so too does the need to protect the individuals behind the wallets—not just the coins themselves.

Alexander Stefanov