Coinbase Dangles $20M Bounty for Hackers—Because Nothing Says ’Secure’ Like Paying Off Threats
In a move that screams ’desperate times call for desperate measures,’ Coinbase just slapped a $20 million reward on the table for anyone who can expose critical security flaws. Because what better way to prove your platform’s ironclad than outsourcing your cybersecurity to mercenary white-hats?
The crypto giant’s ’Hack Us, Get Rich’ program targets blockchain vulnerabilities—while conveniently ignoring the irony of an industry built on ’trustless’ systems now begging for trust.
Wall Street analysts yawned—’Peanuts compared to their 2024 lawsuit settlements.’ Meanwhile, ETH traders shrugged and kept aping into meme coins.
$102,709 as ransom. Instead of complying, Coinbase turned to legal avenues and unveiled an extensive reward program as part of its counter-offensive strategy.
ContentsUser Data Breach Via Foreign Support StaffSimilar Incidents in the Past
User Data Breach Via Foreign Support Staff
According to a blog post from Coinbase, the perpetrators accessed user data by bribing overseas support employees. The compromised data included sensitive information like names, addresses, and government ID documents, but passwords, private keys, and funds were reportedly not affected. Additionally, the breach did not impact institutional Coinbase Prime accounts, underscoring the limited yet concerning nature of the incident.
Following this breach, extortionists threatened to release the stolen data unless their demands were met. Such actions are considered part of a broader pattern of social engineering attacks that increasingly target user security. Refusing to succumb to these threats, Coinbase offered an equal amount as a reward to anyone providing information leading to the arrest of the criminals involved.
Similar Incidents in the Past
This isn’t the first time Coinbase has faced such blackmail attempts. In 2022, the exchange was a target and reacted by launching another reward initiative. Coinbase’s consistent and firm stance against extortion acts as a deterrent in the cryptocurrency sector, aiming to prevent similar incidents. Following this recent event, Coinbase reinforced its internal audits and offered support to all affected users.
ZachXBT, a well-known on-chain analyst via social media, reported a significant increase in scams using fake customer representatives targeting Coinbase users in recent months. These fraudulent schemes have resulted in the loss of millions of dollars worth of cryptocurrencies.
Coinbase has assured that affected users in this latest case will receive full compensation. The exchange emphasized its commitment to working closely with law enforcement agencies to develop stronger protective measures against such threats.
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