Coinbase Converts $20M Ransom into Bounty Following Insider Data Breach

In a bold move, Coinbase has rejected a $20 million ransom demand and instead converted it into a matching bounty after uncovering an insider data leak. The breach, involving bribed overseas support staff, exposed partial data of less than 1% of its users, reigniting concerns about insider threats in the cryptocurrency exchange sector.

Coinbase Rejects $20M Ransom, Converts Demand into Bounty After Insider Data Leak

Coinbase turned a $20 million ransom demand into a matching bounty after revealing that bribed overseas support staff leaked partial data on less than 1% of its users. The incident has reignited concerns about insider threats across cryptocurrency exchanges.

Cybercriminals recruited rogue agents within Coinbase’s support team to access personal user data, including names, contact details, and masked financial information. No customer funds, passwords, or private keys were compromised, but the breach highlights persistent vulnerabilities in exchange security.

The stolen data was used in a social engineering campaign to impersonate Coinbase and defraud users. The exchange’s response—refusing to pay the ransom while offering an equivalent bounty—sets a precedent for handling such threats in the crypto industry.

Coinbase Faces Insider Phishing Attack, $400 Million at Risk

Coinbase, the world’s third-largest cryptocurrency exchange, was targeted in a sophisticated insider phishing attack that exposed sensitive user data. External attackers bribed a small group of overseas customer support contractors, compromising names, email addresses, and limited transaction records for less than 1% of monthly active traders.

No passwords or private keys were stolen, and Prime Accounts remained unaffected. The breach highlights persistent security challenges in the crypto industry, where even minor data leaks can fuel secondary scams. Coinbase confirmed the attackers demanded a $20 million Bitcoin ransom, though the full extent of potential losses remains unclear.

Coinbase Offers $20 Million Bounty After Customer Support Breach

Coinbase has announced a $20 million bounty for information leading to the identification of attackers who breached its customer support system. The perpetrators tricked users into sending funds but did not compromise any accounts directly. Blockchain investigator ZachXBT previously reported that $45 million was stolen from Coinbase customers.

The exchange disclosed the breach on Thursday, revealing that sensitive data was accessed and several users were defrauded. The bounty underscores Coinbase’s aggressive response to the incident, aiming to deter future attacks and restore confidence among its user base.

Crypto Market Dips 4% as Bitcoin Anchors Above $3.4 Trillion

The cryptocurrency sector declined 4% on Thursday, with aggregate market capitalization hovering precariously above the $3.4 trillion mark. Bitcoin’s resilient performance signaled a flight-to-quality trade, limiting losses for BTC and ETH while top altcoins like XRP, Solana, and Cardano saw steeper declines of over 2%.

BNB emerged as the sole gainer among top 10 cryptocurrencies, rising 0.4% and holding firm above the $650 psychological support level. The contrast between Bitcoin’s stability and altcoin weakness suggests investors are favoring established assets amid market turbulence.

Coinbase CEO Brian Armstrong revealed the exchange remains open to new acquisitions following its $2.9 billion Deribit purchase, signaling continued industry consolidation despite the pullback.

Coinbase Faces $400M Fallout from Customer Data Breach

Coinbase disclosed a $400 million financial impact from a recent data breach, confirming unauthorized access to customer information including names, email addresses, and physical addresses. The breach originated from a sophisticated social engineering attack targeting offshore contractors in support roles.

The exchange emphasized that critical login credentials remained uncompromised, but pledged reimbursement for users who inadvertently transferred crypto to attackers. Law enforcement agencies are now collaborating with Coinbase’s security team.

Internal investigations revealed foreign-based employees and contractors facilitated the breach, prompting immediate terminations. The incident has accelerated implementation of enhanced security protocols at the exchange.

Dogecoin Active Addresses Surge 990% Following Coinbase’s New DOGE Plans

Dogecoin has experienced a staggering 990% increase in active addresses as Coinbase unveils new initiatives for the meme cryptocurrency. The surge coincides with a wave of positive developments for the exchange, including its recent inclusion in the S&P 500.

Coinbase’s growing influence in the crypto market is underscored by its latest moves, which have sparked renewed interest in Dogecoin. The token’s cultural prominence, bolstered by endorsements from figures like Elon Musk, continues to drive retail engagement.