Coinbase Suffers Data Breach From Cybercriminals: Report

Some cybercriminals have demanded that American cryptocurrency exchange Coinbase pay $20 million in Bitcoin (BTC) as ransom for an attack. This suggests an audacious extortion attempt targeted at the exchange and its millions of customers. Users Private Data Leaked in Coinbase Breach There are allegations that these fraudsters convinced “a small group” of Coinbase Exchange’s offshore customer service agents to leak users’ sensitive information. Some of the exposed data include users’ full names, emails, addresses, and phone numbers. In May 15 filing submitted with the United States Securities and Exchange Commission (SEC), it was stated that users partial social security numbers and bank account details were also breached in the process. The offshore agents also handed over images of ID obtained during the Know Your Customer process, alongside balance snapshots. Fate of Coinbase Offshore Customer Service Agents Armed with these confidential details, the cybercriminals tricked the exchange’s clients through rampant social engineering campaigns. The exchange did not state when the leak occurred or mention the names of the staff involved. However, the crypto exchange laid off the employees behind the breach as punishment for their actions. So far, it was reported that the breach affected 1% of monthly transacting users. According to a Coinbase filing, salvaging the situation would cost an estimated $180 to $400 million in expenses. This will cover remediation costs and voluntary customer reimbursements. This is “prior to further review of potential losses, indemnification claims, and potential recoveries, which could meaningfully increase or decrease this estimate,” per Thursday’s SEC filing. Push For More Acquisitions After Deribit This unfortunate situation happened exactly a week after Coinbase announced its biggest acquisition . The company is set to acquire Deribit, a cryptocurrency futures and options exchange, for $2.9 billion. The deal includes $700 million in cash and 11 million Coinbase Class A common stock shares. The acquisition marks an essential step for the crypto exchange as it enters the profitable crypto derivatives market. Moving on, the firm has already set its gaze on bagging more acquisitions. In a statement, Coinbase CEO Brian Armstrong pointed out that the company is in a strong financial position to pursue strategic deals that align with its long-term vision. The post Coinbase Suffers Data Breach From Cybercriminals: Report appeared first on TheCoinrise.com .

Source: The Coin Rise