Coinbase

the largest US-based crypto exchange, recently suffered a cyber attack where hackers bribed employees to steal customer data. Here’s what we know so far ¹ ²:

– Stolen Data:

The hackers accessed sensitive customer information, including:

    – Names, Addresses, and Contact Info: Names, email addresses, phone numbers, and postal addresses.

    – Financial Info: Masked Social Security numbers (last 4 digits), masked bank account numbers, and some bank account identifiers.

    – Government IDs: Images of government-issued IDs, such as driver’s licenses and passports.

    – Account Data: Account balance snapshots and transaction history.

– Ransom Demand: The hackers demanded a $20 million ransom in Bitcoin to prevent releasing the stolen data. However, Coinbase refused to pay and instead offered a $20 million reward for information leading to the attackers’ arrest and conviction.

– Employees Involved: The hackers bribed overseas support staff to share internal information. Coinbase has since fired the employees involved and is cooperating with law enforcement.

– Estimated Costs: The company expects to incur costs between $180 million and $400 million for remediation and customer reimbursements.

– Security Measures: Coinbase is investing in anti-fraud technologies, opening a new US-based support hub, and strengthening its security defenses to prevent similar incidents.

CEO Brian Armstrong assured customers that their funds were safe and that Coinbase will reimburse those who were scammed. The company is taking proactive steps to enhance its security and prevent future breaches ².