Coinbase Under DOJ Scrutiny Following $20 Million Ransom Hack
The US Justice Department is investigating Coinbase after a major security breach where hackers stole customer data and demanded a $20 million ransom. The probe focuses on potential insider involvement, including bribes to employees and contractors in India. Here’s a detailed summary of the incident and its implications.
US Justice Department Probes Coinbase Over $20 Million Ransom Hack
The US Justice Department has launched an investigation into a recent security breach at Coinbase, where hackers allegedly stole customer data and demanded a $20 million ransom. According to Bloomberg, federal prosecutors are examining how the attackers compromised the exchange’s systems by bribing employees and contractors in India.
Coinbase disclosed the incident in regulatory filings last week, revealing that customer service staff were coerced into facilitating the data theft. "We’re cooperating with the DOJ and international law enforcement to pursue criminal charges against these actors," said Paul Grewal, Coinbase’s chief legal officer.
The case highlights growing cybersecurity challenges facing cryptocurrency exchanges as digital asset adoption increases. While no funds were reportedly stolen from wallets, the breach raises questions about insider threat protocols at major trading platforms.
Coinbase Under DOJ Investigation Following Security Breach Involving Employee Bribery
The U.S. Department of Justice has launched a criminal probe into a cybersecurity incident at Coinbase, the nation’s largest cryptocurrency exchange. Sources indicate investigators are examining how threat actors compromised sensitive customer data through bribes to the exchange’s India-based personnel.
Coinbase’s chief legal officer confirmed active cooperation with international law enforcement, emphasizing the company’s support for prosecuting those responsible. The breach highlights persistent vulnerabilities in crypto infrastructure despite the industry’s maturation.
Circle Explores $5B Sale to Coinbase or Ripple Amid IPO Preparations
Circle Internet Financial, the issuer of the USDC stablecoin, is reportedly in informal discussions with Ripple Labs and Coinbase Global regarding a potential acquisition. The talks, which coincide with Circle’s ongoing preparations for an initial public offering, highlight the evolving dynamics of the stablecoin market.
Four sources familiar with the matter indicate Circle is seeking a valuation of at least $5 billion—a figure consistent with its IPO ambitions. Ripple recently submitted an offer between $4 billion and $5 billion, which Circle rejected as inadequate. The rebuff comes as Ripple’s own valuation surpasses $300 million, signaling renewed momentum.
