Coinbase, a leading crypto firm, announced a cyberattack that could cost up to $400 million. Hackers accessed less than 1% of customer data by bribing contractors and employees, then used it to impersonate Coinbase and scam users. The attackers demanded a $20 million ransom, which Coinbase refused, instead pledging to reimburse victims.
The breach caused Coinbase’s shares to fall 4.1%, just days before its S&P 500 debut. The incident underscores growing security risks as crypto adoption rises. Coinbase is cooperating with law enforcement, offering a $20 million reward for information, and has fired staff involved in the leak.
Customers are warned to stay vigilant against scams, never share passwords or 2FA codes, and to lock accounts if suspicious activity occurs. Coinbase apologized and committed to resolving the issue transparently.