Unlawful Demand: Rogue Employees Request $20 Million Ransom for Stolen Coinbase Data Rejected
Coinbase Under Fire: $20M Ransom Demand and User Data Breach
Got some juicy news for y'all! It turns out Coinbase, the popular crypto exchange, has been hit by cybercriminals. These scoundrels somehow bribed a few overseas support contractors to snag some customer data from Coinbase's internal tools. But don't lose your cool, because they didn't snag any passwords, private keys, or funds, and Coinbase Prime customers remained untouched.
Criminals Demanded Ransom, but Coinbase Said No Way!
These lowlifes demanded a $20 million payment to keep their mouths shut. Not gonna happen, said Coinbase in a blog post. Instead, theyRedirected that cash into a $20 million reward fund for info leading to the arrest and conviction of these crooks. Coinbase was like, "We ain't paying no ransom. Instead, we're making a $20 million reward for snitches."
The exchange also said they expect to take a hit of around $180 million to $400 million to cover cleanup costs and customer reimbursements. Stolen records include names, addresses, phone numbers, masked Social Security digits, partial bank details, and account snapshots. The criminals' aim was to gather a customer list they could use to trick folks into handing over their crypto.
Keeping Its Promises and Protecting Customers
Coinbase vowed to make victims whole if follow-up scams lure them. They've already implemented new withdrawal friction, extra ID checks, and real-time scam prompts on flagged accounts. They're taking preventive measures too, like creating a new US support hub, beefing up insider-threat detection, and running nonstop red-team simulations. Coinbase has handed the fired insiders over to US and international law enforcement agencies. They're also partnering up with blockchain analytics firms to tag the attackers' addresses and freeze stolen funds.
Targeted Scams and S&P 500 Index Membership Coming Soon
It looks like Coinbase's users have been bait for scammers for a while. Back in March, BeInCrypto reported that Coinbase users lost $46 million to social engineering scams. And now, just days before Coinbase is set to join the S&P 500 index, becoming the first crypto-focused company to become a member, this news drops.
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Sources:- [1] Data breach - Coinbase- [2] Ransom demand - Coinbase Blog Post- [3] Eliminating unauthorized access - Coinbase Blog Post- [4] First cryptocurrency-focused company to join S&P 500 - Coindesk- [5] Cooperation with law enforcement - Coinbase Blog Post
- In the wake of the data breach, Coinbase has announced a $20 million reward fund for information leading to the arrest and conviction of the culprits, demonstrating their commitment to the use of crypto technology and general-news reporting.
- Desiring to protect its customers, Coinbase has implemented new measures such as withdrawal friction, extra ID checks, and real-time scam prompts, signifying the importance of maintaining security in the realm of blockchain technology.
