Coinbase Rejects $20M Ransom, Pledges Same Bounty After Insider Leak Hits 1% of Users
By: crypto news|2025/05/15 23:17:05
0
Share
$20 million ransom demand flipped into a matching bounty when Coinbase disclosed this week that bribed overseas support staff leaked partial data on less than 1% of its users, reigniting fears of insider threats across crypto exchanges.Cyber criminals bribed and recruited rogue overseas support agents to pull personal data on https://t.co/SidVn59JCV— Coinbase (@coinbase) May 15, 2025The crypto exchange says a group of rogue agents were bribed by cybercriminals to copy sensitive data, which was then used in a social engineering campaign to impersonate Coinbase and defraud users.Although no customer funds, passwords, or private keys were accessed, the attackers obtained partial personal information, including names, contact details, masked Social Security and bank account numbers, and in some cases, images of government-issued IDs. Coinbase emphasized that Coinbase Prime users were not impacted and that no direct access to hot or cold wallets was ever at risk.“We’re committed to full transparency,” Coinbase said in a public statement, “and instead of giving in to the $20 million ransom demand, we’re establishing a $20 million reward fund to bring the criminals to justice.”The Anatomy of the AttackAccording to Coinbase, the breach occurred when criminals targeted overseas support agents and offered them financial incentives to participate in the scheme. A small number of insiders accepted the bribes and abused their privileged access to copy data stored in customer support tools.The attackers then attempted to extort the company, threatening to release the stolen information unless Coinbase paid a $20 million ransom. The exchange declined the demand, opting instead to notify affected users and bolster its internal and external security infrastructure.The stolen data included transaction histories, account balances, and some internal documentation accessible to support agents. However, the attackers did not obtain passwords, two-factor authentication codes, private keys, or access to any wallets, thus preventing direct theft of funds.Coinbase’s Response and Customer SupportIn response to the breach, Coinbase has pledged to reimburse retail customers who were tricked into sending funds to scammers through social engineering tactics. These reimbursements will be made after a thorough review process. Affected accounts are now subject to increased withdrawal security protocols, including additional ID checks and scam-awareness prompts.Coinbase said it is also taking steps to reinforce its global support operations. For example, a new customer support hub is being established in the United States, and enhanced insider-threat detection systems are being rolled out across all service locations.The company has intensified internal simulations to stress-test its security infrastructure and isolate potential vulnerabilities.All impacted users have received direct communication, and Coinbase is working closely with law enforcement agencies both in the U.S. and internationally. The rogue employees involved were immediately terminated and referred for criminal prosecution.A Call for AccountabilityRather than succumbing to extortion, Coinbase said it is offering a $20 million reward for information that leads to the arrest and conviction of those responsible for the breach. Anyone with credible information is encouraged to contact the company at security@coinbase.com. In parallel, Coinbase and its partners have tagged crypto wallet addresses associated with the attackers to aid in asset recovery.Coinbase is also reminding users to stay vigilant against scams and impersonators. Customers are urged to never share passwords or 2FA codes, and to lock their accounts immediately if something seems suspicious.“Trust is foundational to crypto adoption,” Coinbase said in its closing statement. “We’re sorry for the concern this incident caused and remain committed to transparency and protecting our users at every step.”Huge Blow for the CompanyCommenting on the cyber attack on Coinbase, Nick Jones, founder and CEO at Zumo, said: “Unfortunately, as our nascent industry grows rapidly, it draws the eye of bad actors, who are becoming increasingly sophisticated in the scope of their attacks and harnessing new AI tools and techniques to bypass fraud prevention measures.”“This is understandably a huge blow for a company that has had a pivotal few weeks, announcing the acquisition of Deribit in the digital market’s largest deal to date, and then joining the S&P 500.”“This attack underlines the critical importance of robust cybersecurity measures. The European Union (EU) introduced its Digital Operational Resilience Act (DORA) earlier this year with an emphasis on financial institutions ensuring the resilience of their supply chain, promoting better data hygiene, and sharing usable insights on attacks they have experienced to strengthen the industry’s perimeter. This seems particularly pertinent as it emerges that the hack occurred when attackers bribed overseas support staff,” Jones added.The post Coinbase Rejects $20M Ransom, Pledges Same Bounty After Insider Leak Hits 1% of Users appeared first on Cryptonews.
You may also like

Pantera Capital Partner: The Financial Trajectory of AI Agents
AI agents will move towards fully autonomous commerce, and blockchain is the only digital-native financial track that meets its needs for identity, micropayments, and trustless execution.

In the next 5 years, Vitalik will scale Ethereum like this
Short-Term vs Long-Term, Execution, Data vs State

Sam Altman and the End of the World Capitalism
The real danger is never AI itself, but those who believe they have the right to define the human destiny.

Wall Street Rings Inflation Alarm Bells Amid Iran Tensions, What Does It Mean for Cryptocurrency?
Interest rates have remained stubbornly high, posing a challenge to the cryptocurrency bull case.

Qwen Open Source Model Enters Mobile, Nasdaq Tests Water Prediction Market, What's the Overseas Crypto Community Talking About Today?
What Was the Hottest Topic Among Expats in the Last 24 Hours?

MegaETH Co-founder: 48 Hours After Escaping Dubai, I Reassess the Entire Crypto Scene
The global environment is not favorable to us, but in the long run, it may be favorable to us.

Morning Report | Strategy increased its holdings by 3,015 bitcoins last week; BitMine increased its holdings by 50,928 ETH last week; Vitalik elaborated on the Ethereum execution layer roadmap
March 2 Market Key Events Overview

Why is it said that there are structural opportunities in encrypted AI?
When centralized AI falls into the dilemma of regulation and trust, Crypto + AI will become a structural escape route for safeguarding data and sovereignty in a multipolar world.

Make Probability an Asset: A Forward-Looking Perspective on Predictive Market Agents
The predictive market agents are expected to present early prototypes in early 2026, likely becoming an emerging product form in the field of agents in the following year.

Consumer application issues
The truly outstanding applications will not ask people to "use cryptocurrency," but will provide practical and better solutions to the problems that people already face.

Arthur Hayes: The flames of war in the Middle East rise, Bitcoin is bullish
War is often accompanied by monetary easing, which may also become an important backdrop for driving up risk assets like Bitcoin.

Legendary investor Naval: In the AI era, traditional software engineers have no value?
You can always find a perfect niche that fits you and become a leader in that field.

More absurd than knowing about the war in advance is knowing in advance about the assassination of Soleimani
The temptation of a million dollars cannot be stopped by the calamity of prison.

Key Market Insights on March 2nd, how much did you miss?
1. On-chain Funds: $96.8M Inflow to Base This Week; $234.9M Outflow from Arbitrum
2. Largest Price Swings: $SYND, $TCY
3. Top News: Anthropic Tops Global AI Product Ranking after Pentagon Rejection, Celebrities Boycott Its Competitor OpenAI

How to systematically track high-performing addresses on Polymarket?
Why can everyone see the data but not catch the "Whale Wallet"?

From Stanford Lab to Silicon Valley Streets: How OpenMind is Solving the "Last Mile" Problem of the Machine Economy?
The robotics industry is also facing issues similar to the "shanzhai era": fragmented systems, closed ecosystems, and lack of interoperability.

PlanX: Reconstructing On-Chain Execution with AI, Moving Towards a New Paradigm
Reconstructing on-chain execution with AI, moving towards a new paradigm of decentralized finance.

US Judge Allows Binance Unregistered Token Lawsuit to Advance
Key Takeaways: A federal judge in Manhattan dismissed Binance’s petition to resolve a securities lawsuit through private arbitration,…
Pantera Capital Partner: The Financial Trajectory of AI Agents
AI agents will move towards fully autonomous commerce, and blockchain is the only digital-native financial track that meets its needs for identity, micropayments, and trustless execution.
In the next 5 years, Vitalik will scale Ethereum like this
Short-Term vs Long-Term, Execution, Data vs State
Sam Altman and the End of the World Capitalism
The real danger is never AI itself, but those who believe they have the right to define the human destiny.
Wall Street Rings Inflation Alarm Bells Amid Iran Tensions, What Does It Mean for Cryptocurrency?
Interest rates have remained stubbornly high, posing a challenge to the cryptocurrency bull case.
Qwen Open Source Model Enters Mobile, Nasdaq Tests Water Prediction Market, What's the Overseas Crypto Community Talking About Today?
What Was the Hottest Topic Among Expats in the Last 24 Hours?
MegaETH Co-founder: 48 Hours After Escaping Dubai, I Reassess the Entire Crypto Scene
The global environment is not favorable to us, but in the long run, it may be favorable to us.