Coinbase Faces Data Breach as Criminals Demand Ransom

Coinbase, the largest cryptocurrency exchange headquartered in the United States, acknowledged an “extensive” data breach on Thursday. Yet that’s what CEO Brian Armstrong just disclosed, that cybercriminals stole personal information from Coinbase customers and then demanded a ransom of $20 million. The cause of the breach was that the criminals bribed agents of customer service who then disclosed sensitive information.

In his social media statement, Armstrong explained the violation. He disclosed that the stolen customer data included customer names, dates of birth and half of national identification numbers. This information was subsequently used by the crooks to plan crypto-stealing scams. Bribed foreign customer service agents were key enablers of the breach. In addition, by using their platforms to give secretive third parties access to private personal data, they put users’ security at risk.

Armstrong emphasized Coinbase’s stance against the ransom demand, stating that the company would not comply with the criminals’ threats. He added that had the ransom not been paid, cyber crooks would have likely published the stolen data.

“For these would-be extortionists or anyone seeking to harm Coinbase customers, know that we will prosecute you and bring you to justice.” – Brian Armstrong

In response to the attack, Coinbase has already begun to file notices of objection as amicus curiae. They offered a $20 million reward for any intelligence leading to the arrest of the perpetrators. This change is a major step forward for them in the fight against cybercrime to defend their customer population.

The incident is a notable example of a large corporation being attacked by hackers, a trend that’s on the rise. From the public sector to education to private companies, many organizations have been hacked and data breached in recent years. This troubling trend should give everyone pause when considering their cybersecurity posture.

Until today, Coinbase has allayed the concerns of its customers that they’re secure. The company has taken impressive steps to improve its protocols and avoid future incidents. Protecting customer information is the company’s top priority as it continues to respond to this unfortunate and difficult circumstance.