Coinbase Faces $400 Million Remediation Costs Following Data Breach
Ari Redbord, global head of policy at TRM Labs, highlighted Coinbase's response to a recent hack as a model for other exchanges. He emphasized the vulnerability of crypto platforms due to inadequate cyber controls.
Key points from the incident include:
- Coinbase staff were bribed to compromise customer data.
- Founder Brian Armstrong received a ransom demand for $20 million in bitcoin.
- The company could incur up to $400 million in remediation costs.
- Coinbase is offering a $20 million bounty for information on the attackers.
Redbord noted that increased regulatory oversight could help combat these security issues and target malicious actors outside the crypto space. Other major hacks in the industry include Bybit's $1.5 billion breach and FTX's $400 million hack in November 2022.