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

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.