Coinbase’s Delayed Disclosure: Data Breach Involving Third-Party Contractor Uncovered Months Earlier

Coinbase, a leading cryptocurrency exchange, reportedly identified a data breach linked to third-party contractor TaskUs as early as January 2025, but only disclosed it publicly in May. The breach involved rogue TaskUs employees who allegedly leaked customer information for bribes. Hackers demanded $20 million in Bitcoin, which Coinbase refused to pay. The compromised data included customer names, addresses, masked bank details, and identity documents. This incident highlights ongoing security challenges in the crypto industry and raises questions about transparency in breach disclosures.

Coinbase Knew of Data Breach Months Before Disclosure

Coinbase reportedly discovered a data breach involving third-party contractor TaskUs as early as January, months before its public disclosure in May. The breach stemmed from rogue employees at TaskUs, who allegedly leaked customer information in exchange for bribes. Hackers demanded $20 million in Bitcoin, which Coinbase refused to pay.

The compromised data included customer names, addresses, masked bank details, and identity documents, though no funds or passwords were accessed. TaskUs terminated two employees tied to the incident, describing it as part of a broader campaign targeting Coinbase and other service providers.

Coinbase’s delayed disclosure raises questions about transparency in handling security incidents. The breach underscores the risks of outsourcing customer support and the persistent threats facing cryptocurrency platforms.

BlackRock Transfers $429M in Bitcoin to Coinbase Prime Amid Market Speculation

BlackRock has moved 4,113 Bitcoin, valued at approximately $429 million, from its IBIT ETF-linked wallets to Coinbase Prime. This marks the firm’s first significant transfer after a month of consistent accumulation, sparking concerns about a potential shift in strategy. The transactions occurred in systematic batches of 300 BTC, suggesting a deliberate and structured approach.

Market reaction was immediate, with Bitcoin briefly dipping below $105,000 as traders speculated about institutional selling pressure. However, on-chain data reveals no confirmed sale of the transferred assets. The IBIT ETF continues to hold over 664,000 BTC, maintaining its substantial market position despite the recent $430 million outflow.

Coinbase Prime’s role as IBIT’s designated custodian adds context to the transfer. While the movement aligns with the ETF’s largest single-day outflow, the absence of confirmed sales leaves room for interpretation. Market participants now watch for whether this signals a tactical reallocation or a broader change in institutional bitcoin strategy.