Cryptocurrency Exchange, Coinbase, Discloses Cyber Attack Involving Employee Bribery, Issues Alert over Potential Loss of $4 Billion
Breaking: Coinbase Confesses Massive Cyber Attack – Hackers Defraud Customers via Employee Bribery
In a shocking turn of events, Coinbase – the largest US-based cryptocurrency exchange – has revealed a devastating cyber attack that originated from bribing employees.
The exchange has confessed to U.S. Securities and Exchange Commission (SEC) that hackers bribed numerous workers to reveal customer account info and internal documentation [@SEC_News].
Coinbase projects it'll shell out $180 million to $400 million in rectification costs and customer compensations.
In the leaked data, hackers obtained:
- Personal data: names, addresses, phone numbers, emails, and partially unmasked Social Security digits
- Financial info: masked bank account numbers, some identifiers, account balances, and transaction histories
- Government IDs: driver's licenses, passports, and support agent documents
- Limited corporate data: communications, trainings, and documents available to support staff
Coinbase stumbled upon the hack by receiving a May 11th extortion email, demanding a $20 million Bitcoin (BTC) pay-off to silence the hackers from broadcasting the unlawfully obtained information [@Coinbase].
Employees involved have since been relieved of their duties, and the company refuses to give in to the ransom demands. Law enforcement is now investigating the case alongside Coinbase.
In a video posted on X, CEO Brian Armstrong pledges to refund those affected, boost cybersecurity defenses, and relocate certain overseas customer support operations [@Coinbase]. Coinbase shares dipped 4% after the news broke.
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Categories
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- Futuremash
- Financeflux
- Blockchain
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- HodlX
- Press Releases
- The shocking cyber attack on Coinbase, the largest US-based cryptocurrency exchange, was initiated by bribing employees to reveal customer account information and internal documentation.
- The breach at Coinbase has resulted in a potential loss of $180 million to $400 million, with hackers obtaining personal data, financial information, government IDs, and limited corporate data.
- In the wake of the attack, Coinbase will be improving its cybersecurity defenses, refunding affected customers, and relocating certain overseas customer support operations.
- Amidst this unfolding scandal, the future of business, finance, and technology, including cryptocurrencies like Bitcoin and Ethereum, may be impacted as general-news, regulation, and crime-and-justice sectors keep a close eye on this developing story.
