Coinbase’s Delayed Breach Disclosure Fuels Crypto Trust Crisis

When transparency moves at blockchain speed—glacial, with extra steps.

Security or secrecy?
The exchange took its sweet time alerting users about compromised data—because nothing builds confidence like finding out you’re at risk after the fact.

Trust falls harder in crypto.
Traditional finance would’ve faced fines; here, it’s just another Tuesday. Maybe next time they’ll ‘disrupt’ accountability too.

Coinbase customer data breach ties to insider operation

The breach reportedly began with an India-based employee of TaskUs, a U.S. outsourcing firm. According to former employees of the firm, the employee was caught photographing customer data from her work computer using her personal device. Along with a suspected accomplice, she allegedly sold sensitive Coinbase user information to malicious actors in exchange for payment.

TaskUs reportedly confirmed that two employees, along another 200, were terminated for unauthorized data access, adding that the incident was part of a “broader, coordinated criminal campaign.”

While Coinbase has since cut ties with the involved personnel and implemented tighter controls, the revelation has sparked fresh questions about why the exchange waited until mid-May to formally disclose the breach, particularly given the potential financial and reputational fallout.

Security breaches have long remained a threat to the crypto industry, with malicious actors constantly lurking in the shadows to prey on unsuspecting victims. In May alone, hacks and exploits led to an estimated $244.1 million in losses, highlighting the high stakes involved in such incidents.