Coinbase Offers $20M Bounty After Data Breach

Coinbase $20 Million Bounty for Data Breach

Coinbase announced a $20 million reward program to apprehend those responsible for a recent data breach. The breach involved compromised customer service agents who were bribed to leak customer data, leading to an attempted extortion attempt for $20 million, which Coinbase refused to pay.

Key Details of the Coinbase Data Breach:

• Less than 1% of Coinbase's monthly transacting users were affected.
• No passwords, private keys, or access to customer funds were compromised.
• Stolen data included names, contact details, masked SSNs, bank data, and account activity.
• Attackers attempted social engineering scams impersonating Coinbase.

Coinbase is cooperating fully with law enforcement and taking proactive steps to enhance security. These include:

• Establishing a new US-based customer support hub
• Strengthening insider threat detection systems
• Implementing mandatory scam-awareness prompts and ID checks
• Collaborating with law enforcement to trace stolen funds

Coinbase assures users that any customers tricked into sending funds due to this incident will be fully reimbursed after an internal review. Affected users have already been contacted directly.

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CEO Brian Armstrong's Statement

Coinbase CEO Brian Armstrong released a video statement vowing to prosecute those involved and reiterating the company's refusal to pay the ransom.