Key notes
- The crypto Exchange Coinbase violation exhibited personal data of 69,461 users in December 2024.
- The hackers demanded a ransom of $ 20 million to avoid the flight of stolen data.
- Instead of paying, Coinbase offers a reward of $ 20 million for information on attackers. .
More information emerged on the violation of Coinbase Global Inc., which compromised the personal data linked to thousands of users.
A new file with the Maine Prosecutor’s Office General confirmed that 69,461 people were affected during the December 2024 incident. This raises new concerns about security within the cryptographic industry.
The hackers asked for a ransom of $ 20 million in Coinbase
Coinbase’s violation was revealed after the company revealed that the attackers demanded a ransom of $ 20 million to prevent the stolen data from being disclosed on the Dark Web. According to Coinbase, hackers have targeted customer support staff abroad, using cash incentives to access internal systems.
According to the file, the commercial platform is determined to compensate the victims in the midst of current surveys.
Although the attackers obtained personal details such as names, personal addresses and information by e-mail, Coinbase said that passwords, private keys and user funds were not part of the violation.
This detail was included in the company’s file with the Securities and Exchange American Commission. However, many users remain concerned about the long -term impact of their customer’s knowledge exposure (KYC).
Federal authorities intervened after the incident. The United States Ministry of Justice is currently investigating the question at the request of Coinbase. Meanwhile, the Securities and Exchange Commission examines whether the negotiation platform inflated user numbers before its public list in 2021.
Coinbase -chief legal director Paul Grewal described the action of the SEC as a Hollover investigation of a previous administration. He reassured that this does not translate into serious consequences.
In a surprising decision, Coinbase offered a reward of $ 20 million for information on individuals behind the hack. The company hopes that the premium will lead to arrests and send a message to future attackers.
Public reaction and KYC concerns increase as costs rise
The delay in the time of time responding to the violation aroused criticism. A well -known founder and investor of technology, Michael Arrington, expressed the human toll of the violation.
Publication on X, he said that the data on display could cause damage beyond what compensation can correct. He suggested that the cost should be measured in dollars, as is emotional and physical damage to the victims.
Brian, thanks for the comments. Apologies for the title of Bloomberg … @Emiliemc Also told me after publishing that Coinbase had contacted the Doj.
I fully understand that the outfit of responsible leaders would create a situation where the best people would not …
– Michael Arrington 🏴☠️ (@arrington) May 21, 2025
Coinbase estimates that the violation could lead to spending between $ 180 million and $ 400 million to cover damage and reimbursement control. This development occurs when government regulators and users wonder how secure their data on the main cryptography platforms.
Arrington also criticized KYC laws, calling for ineffective and dangerous. He blamed a system where the reasons for profit and the low penalties for data violations allow these events to continue. He urged stronger rules and more business responsibility.
It should be noted that cryptographic scams have become increasingly common in recent times. The digital active ecosystem faces attacks not only on large platforms like Coinbase but also on Defi protocols.
One of the most notable high -level hacking cases was bybit, which led to a historic crypto flight of $ 1.4 billion.
However, beyond high-level offenses like this, daily investors are also victims of well-planned scams. Recently, a woman from Maryland lost $ 3 million in a cryptographic scam known as “pork butcher”. The fraudsters, which would come from Southeast Asia, have built confidence over several weeks using a false Korean messaging application before flying its funds.
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Benjamin Godfrey is a blockchain enthusiast and a journalist who savor the writing of actual applications for blockchain technology and innovations to stimulate general acceptance and global integration of emerging technology. His desire to educate people on cryptocurrencies inspires his contributions to renowned media and blockchain sites.
