Coinbase Hack Results in $400 Million Loss and User Data Exposure
Coinbase faced a significant data breach, leading to potential losses of nearly $500 million for its customers. The incident involved cybercriminals bribing Coinbase support employees to access sensitive user data, including personal identification and account details.
- Experts criticized Coinbase's security measures, stating the breach was preventable with better protocols.
- The exchange has offered a $20 million bug bounty and pledged to reimburse affected users between $180 million and $400 million.
- 69,461 customers were impacted, with the breach occurring in December 2024 but discovered only on May 15, 2025.
- Competitors like Binance and Kraken reported successfully thwarting similar attacks.
- Concerns have been raised about the possibility of real-world robberies targeting affected users due to leaked information.
Coinbase announced plans to cooperate with law enforcement and improve security measures but faces scrutiny over its preventative strategies and potential liability for user safety post-breach. This incident underscores systemic vulnerabilities within the crypto sector that could impact all exchanges.