Nearly 70,000 Accounts Compromised in Coinbase Insider Breach

A previously undisclosed security breach has exposed sensitive user data of nearly 70,000 Coinbase customers, following what appears to be an internal compromise involving bribed support staff.

The incident, which occurred back in December but only came to light in early May, involved a small group of customer service agents based overseas who were paid off to leak user data.

The attackers gained access to partial banking and social security details, contact information, ID images, and account-related metadata.

Coinbase became aware of the breach after receiving a Bitcoin ransom demand for $20 million. The company refused to pay and notified affected customers by email on May 15.

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CEO Brian Armstrong later confirmed in a public statement that Coinbase would reimburse those impacted, bolster its security defenses, and move some of its customer operations away from high-risk regions.

Cleanup costs are expected to fall between $180 million and $400 million, according to internal estimates.

Alexander Stefanov