Coinbase Breach Exposes Over 69,000 Users in $20M Ransom Threat

Coinbase, one of the biggest crypto exchanges in the world, is under fire after revealing a major security breach. In December 2024, hackers gained access to the personal information of over 69,000 users. The company is now dealing with legal pressure , regulatory probes, public criticism, and the high cost of fixing the damage. Coinbase Confirms Major Breach and Dark Web Threats Coinbase recently reported that the personal details of 69,461 people were stolen in a December cyberattack. In a filing with the Maine Attorney General’s Office, the company confirmed that names, home addresses, and email addresses were taken. These details were part of Coinbase’s know-your-customer (KYC) process. Hackers reportedly bribed customer service agents outside the U.S. with cash. It was revealed that insiders in the company helped the bad actors get into Coinbase’s system and access private information. Notably, the trading platform said no passwords, private keys, or user money were stolen. After the data breach, the hackers asked Coinbase to pay a $20 million ransom to keep the stolen data off the dark web. However, Coinbase refused to pay the attackers. The threat raised serious fears about identity theft and scams. While Coinbase tried to calm the situation, public concern kept growing. This unfortunate situation happened shortly after Coinbase announced its biggest acquisition . SEC and DOJ Begin Investigations Soon after the breach was revealed, the U.S. Securities and Exchange Commission (SEC) launched an inquiry. Reports suggest the SEC is investigating whether Coinbase provided false or inflated user numbers ahead of its 2021 Initial Public Offering (IPO). At the same time, the Department of Justice is investigating the breach, following a request from Coinbase CEO Brian Armstrong. The company says it is fully cooperating with authorities. Coinbase Faces Growing Criticism Many crypto community members are unhappy with how Coinbase handled the breach situation. Critics said the company waited too long to alert users and did not do enough to protect their data. In a recent X post , tech investor Michael Arrington expressed strong concern. He warned that stolen KYC data can cause serious harm to users. He also criticized the KYC rules that require users to provide so much personal information. He said that current laws and companies that only care about making profits put users in more danger. He called on businesses and governments to do more to protect users. The exchange also said the total cost of fixing the damage and paying back users could be between $180 million and $400 million. Experts believe Coinbase can handle the money loss, but rebuilding its image and earning back user trust may take longer. This breach shows why protecting personal information is essential, especially in crypto. The post Coinbase Breach Exposes Over 69,000 Users in $20M Ransom Threat appeared first on TheCoinrise.com .

Source: The Coin Rise