Coinbase Security Breach Scandal: $20 Million Hunt for Data Thieves

Coinbase, the largest U.S. cryptocurrency exchange, disclosed a significant data breach in May 2025, affecting less than 1% of its users. Hackers bribed overseas support agents to steal personal data, prompting Coinbase to offer a $20 million bounty for information leading to the culprits’ arrest. The breach could cost the company up to $400 million, raising concerns about centralized exchange security.$400M Coinbase Breach Hits Less Than 97,000 UsersOn May 15, 2025, Coinbase revealed a major cybersecurity incident involving the theft of personal data from a small subset of its customers, estimated at less than 1% of its monthly transacting users (MTUs), approximately 97,000 customers based on the company’s 9.7 million MTUs reported in its March 2025 annual report.Cyber criminals bribed and recruited rogue overseas support agents to pull personal data on https://t.co/SidVn59JCV— Coinbase (@coinbase) May 15, 2025Hackers orchestrated the breach by bribing and recruiting rogue overseas support agents and contractors, who leaked sensitive information, including names, phone numbers, addresses, government IDs, partial Social Security numbers, and account details. No passwords, private keys, or funds were compromised, and Coinbase’s Prime accounts remained unaffected. The company estimates the financial impact could range from $180 million to $400 million, covering customer reimbursements and recovery efforts.Read more: Coinbase Caught in $15M Rug Pull Scandal – Is Base Still Safe?The attackers demanded a $20 million ransom to withhold the stolen data from public release, which Coinbase refused to pay. Instead, the exchange fired the involved staff, announced plans to press criminal charges, and established a $20 million reward fund for information leading to the perpetrators’ arrest and conviction. Coinbase’s Security Track Record Under ScrutinyThis breach adds to Coinbase’s history of security challenges.Read more: Is Coinbase Safe?The exchange has faced prior incidents, including a 2021 hack affecting over 6,000 users, where hackers exploited a flaw in SMS-based two-factor authentication (2FA) through phishing scams, and a 2023 attempt by the Octopus hacker group that did not compromise user funds. Despite robust security measures – such as storing 98% of assets in offline cold storage, AES-256 encryption, and insurance for hot wallets – Coinbase has struggled with technical issues like server crashes during high-traffic periods and account recovery vulnerabilities. These incidents fuel user skepticism, with some reporting difficulties obtaining timely support.User Score9.8 Coinbase PromotionGet Bonus Up to $600Sign Up NowCoinbase ReviewThe 2025 breach, attributed to insider threats rather than a direct system hack, underscores the risks of human error in centralized exchanges. TechCrunch reported that the hackers targeted support staff, exploiting their access to sensitive systems. This tactic echoes a 2023 phishing attack linked to the 0ktapus group, which briefly compromised Coinbase’s systems. According to blockchain investigator ZackXBT, over $45 million was stolen from Coinbase users in early May 2025 through social engineering scams. These incidents suggest that organized crime groups are increasingly targeting crypto platforms and their users.ZachXBT: It is suspected a Coinbase user was scammed yesterday for $34.9M (400.099 BTC). Also multiple other suspected thefts from Coinbase users in the past two weeks bringing the total stolen this month to $46M+. Funds from each theft were bridged from Bitcoin to Ethereum via...— Wu Blockchain (@WuBlockchain) March 28, 2025The post Coinbase Security Breach Scandal: $20 Million Hunt for Data Thieves appeared first on NFT Evening.