Coinbase Faces $400m Hit from Cyber Attack

The leading cryptocurrency exchange Coinbase experienced a cyber attack which resulted in losses estimated between $400 million after hackers used bribes to obtain customer information including names and addresses as well as partial Social Security numbers from overseas support agents. The security breach allowed scammers to execute social engineering schemes that resulted in criminals requesting $20 million in ransom. The organization denied the ransom demand while providing a $20 million reward for information about the attackers' identities before terminating involved staff members. The stock value dropped 4.1% even though the company experienced a 22% increase in monthly value. Support agents had unauthorized access to data for months which was detected recently so the company enhanced its fraud protection systems and plans to establish a US support operation. The company provides reimbursement to affected users while working with law enforcement to prevent future scams from occurring. The breach occurred right before Coinbase joined the S&P 500 index demonstrating the rising cyber threats in the crypto industry where hackers stole $2.2 billion from cryptocurrency platforms in 2024 according to Chainanalysis. CEO Brian Armstrong expressed his determination to obtain justice through strengthened security measures. The growing adoption of crypto faces security risks because of sophisticated cyberattacks which Zumo alongside other firms recognize as major threats to the industry's expansion.