{"id":21103,"date":"2025-05-16T11:01:34","date_gmt":"2025-05-16T11:01:34","guid":{"rendered":"https:\/\/nft.runfyers.com\/index.php\/2025\/05\/16\/coinbase-security-breach-scandal-20-million-hunt-for-data-thieves\/"},"modified":"2025-05-16T11:01:34","modified_gmt":"2025-05-16T11:01:34","slug":"coinbase-security-breach-scandal-20-million-hunt-for-data-thieves","status":"publish","type":"post","link":"https:\/\/nft.runfyers.com\/index.php\/2025\/05\/16\/coinbase-security-breach-scandal-20-million-hunt-for-data-thieves\/","title":{"rendered":"Coinbase Security Breach Scandal: $20 Million Hunt for Data Thieves"},"content":{"rendered":"

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Coinbase, the largest U.S. cryptocurrency exchange, disclosed a significant data breach in May 2025, affecting less than 1% of its users. Hackers bribed overseas support agents to steal personal data, prompting Coinbase to offer a $20 million bounty for information leading to the culprits\u2019 arrest. The breach could cost the company up to $400 million, raising concerns about centralized exchange security.<\/span><\/p>\n

$400M Coinbase Breach Hits Less Than 97,000 Users<\/strong><\/h2>\n

On May 15, 2025, Coinbase revealed a major cybersecurity incident involving the theft of personal data from a small subset of its customers, estimated at less than 1% of its monthly transacting users (MTUs),\u00a0 approximately 97,000 customers based on the company\u2019s 9.7 million MTUs reported in its March 2025 annual report.<\/span><\/p>\n

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Cyber criminals bribed and recruited rogue overseas support agents to pull personal data on <1% of Coinbase MTUs. No passwords, private keys, or funds were exposed. Prime accounts are untouched. We will reimburse impacted customers. More here: https:\/\/t.co\/SidVn59JCV<\/a><\/p>\n

\u2014 Coinbase \ud83d\udee1\ufe0f (@coinbase) May 15, 2025<\/a><\/p>\n<\/blockquote>\n

Hackers orchestrated the breach by bribing and recruiting rogue overseas support agents and contractors, who leaked sensitive information, including names, phone numbers, addresses, government IDs, partial Social Security numbers, and account details. N<\/strong><\/span>o passwords, private keys, or funds were compromised<\/b>, and Coinbase\u2019s Prime accounts remained unaffected. The company estimates the financial impact could range from $180 million to $400 million, covering customer reimbursements and recovery efforts.<\/span><\/p>\n

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Read more: <\/span>Coinbase Caught in $15M Rug Pull Scandal \u2013 Is Base Still Safe?<\/span><\/a><\/p>\n<\/blockquote>\n

The attackers demanded a $20 million ransom to withhold the stolen data from public release, which Coinbase refused to pay. Instead, the exchange fired the involved staff, announced plans to press criminal charges, and established a $20 million reward fund for information leading to the perpetrators\u2019 arrest and conviction.\u00a0<\/span><\/p>\n

Coinbase\u2019s Security Track Record Under Scrutiny<\/strong><\/h2>\n

This breach adds to Coinbase\u2019s history of security challenges.<\/span><\/p>\n

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Read more: <\/span>Is Coinbase Safe?<\/span><\/a><\/p>\n<\/blockquote>\n

The exchange has faced prior incidents, including a 2021 hack affecting over 6,000 users, where hackers exploited a flaw in SMS-based two-factor authentication (2FA) through phishing scams, and a 2023 attempt by the Octopus hacker group that did not compromise user funds.\u00a0<\/span><\/p>\n

Despite robust security measures \u2013 such as storing 98% of assets in offline cold storage, AES-256 encryption, and insurance for hot wallets \u2013 Coinbase has struggled with technical issues like server crashes during high-traffic periods and account recovery vulnerabilities. These incidents fuel user skepticism, with some reporting difficulties obtaining timely support.<\/span><\/p>\n

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