Coinbase Breach Fallout: When Crypto Leaks Turn Deadly
Another day, another exchange hack—but this one’s got teeth. Personal data spills from Coinbase could do more than drain wallets; we’re talking real-world collateral damage.
Security theater meets mortal stakes: The ’not your keys, not your crypto’ crowd just got a morbid validation. When KYC data walks out the door, it doesn’t just enable identity theft—it paints targets.
Wall Street bankers will still sleep soundly in their gated communities, of course. But for the rest of us? Time to check those digital six-shooters.
Michael Arrington accuses Coinbase of using the cheapest option for customer service
Michael Arrington said regulators should think again about the importance of “know-your-customer” (KYC). He added, “Very disappointed in Coinbase right now. Using the cheapest option for customer service has its price. And Coinbase’s customers will bear that cost.”
He also said that problems like these will keep happening because of KYC and other laws that make it easy for hackers to get away with their crimes. He added that the government and businesses need to do something to stop this.
However, Balaji Srinivasan, the former chief technology officer of Coinbase, disagreed with Arrington’s view that leaders should be punished. He said regulators are forcing KYC on companies that don’t want to do it.
Crypto kidnappings are on the rise
Digital assets are increasingly linked to real-world heists. It reminds investors why keeping crypto private is essential. Last November, three teens kidnapped a man in Las Vegas after a crypto event he put on and held him hostage at his home with a gun.
He was pushed into a car and taken out into the desert. Attackers got into his crypto wallets and stole $4 million worth of cryptocurrency and non-fungible tokens (NFTs).
This year also has a share of kidnappings. In January, a group of thieves broke into the home of David Balland, co-founder of Ledger, in Vierzon, France. They took Balland and his wife hostage, beat them up, and cut off one of Balland’s fingers to get to his crypto wallet keys.
After the attack, the thieves called another co-founder of Ledger and demanded a ransom. Police arrested 10 suspects.
In addition, a famous streamer and OnlyFans personality named Kaitlyn “Amouranth” Siragusa had her home broken into by three armed men in March. They beat her up and told her to send them her Bitcoin. Luckily for her, she could fire her gun, which made the attackers run away.
As recent as this month, the father of a crypto millionaire was kidnapped in broad daylight on the streets of Paris. French cops were able to free him. It was said that the kidnappers wanted a ransom of €5 million to €7 million. The attackers cut off one of the man’s fingers as a cruel way to get him to obey. Police arrested five suspects.
Because of these and other events, a physical security company in Amsterdam told Bloomberg that it had seen a rise in clients with big amounts of crypto before the Coinbase breach.
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