Coinbase is the largest cryptocurrency exchange in terms of USD trading volume. Just last month, it confirmed a data breach releasing its customers’ private information. The company had already been breached when their systems were hacked, causing an even bigger breach. This attack resulted in the acquisition of sensitive data on over 100 million users by 2022.
The hacker successfully extracted customer names, postal addresses, email addresses, phone numbers, and the last four digits of users’ Social Security numbers. Moreover, government-issued identity documents such as Social Security numbers were part of the stolen data in the breach. The hacker/fraudster tried to extort a mind-boggling $20 million ransom with Coinbase. The company has been upfront that the tidal wave of cash is not coming.
Speaking on X (formerly Twitter), Coinbase CEO Brian Armstrong acknowledged the issue and attempted to placate customers by assuring them that their funds were safe. He acknowledged the breach and stressed that Coinbase is working hard to implement new security measures right away.
“obtained this information by paying multiple contractors or employees working in support roles outside the United States to collect information from internal Coinbase systems to which they had access in order to perform their job responsibilities.” – Coinbase’s filing
The breach exposes serious questions about how the nascent cryptocurrency industry is protecting consumers’ sensitive personal information. Coinbase says that they are currently looking into the incident. They have put a strong emphasis on transparency, by letting customers know which data was compromised and what they are doing to protect their data in the future.
Coinbase has expressed confidence that customer funds are safe with the company. This incident is an alarming example of the growing cyber threats financial platforms are experiencing globally. The company does not pay the ransom. This decision could be an early indication of a broader trend among tech companies to discourage future attacks.
Coinbase’s response will likely involve extensive collaboration with cybersecurity experts and law enforcement agencies to trace the hacker’s identity and mitigate potential damages. Given the circumstances surrounding this breach, we strongly encourage you to check the security settings on your account. Be smart and monitor your account for suspicious activity.
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