Coinbase Under Fire Over Months-Long Silence on Major Data Breach

Coinbase is now facing mounting scrutiny after it allegedly sat on a serious data breach for over four months, exposing the personal information of nearly 70,000 users before taking action.

The breach, which reportedly began with insiders at an overseas customer support center leaking sensitive data, was discovered in January 2025. However, users and regulators were not informed until May. The compromised data included partial Social Security numbers, home addresses, and account activity tied to support tickets.

The vendor at the center of the leak, TaskUs, is said to have had staff in India who accepted bribes in exchange for screenshots of Coinbase customer information. The exchange has since cut ties with the firm and is reportedly implementing stricter oversight of all third-party partners.

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Coinbase now estimates the incident could cost up to $400 million in legal and remediation expenses. Meanwhile, a class-action lawsuit accuses the company of withholding critical information that might have affected its stock performance. A separate case has been filed against TaskUs for negligence.

By March, the stolen data had surfaced in Telegram groups known for crypto fraud, with attackers eventually attempting to extort $20 million from Coinbase in exchange for deleting the files. The company refused and instead offered the same amount as a bounty for leads on the culprits.

Regulatory agencies are now investigating whether Coinbase’s failure to disclose the breach sooner violated SEC rules for public companies.

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.