Coinbase reported potential losses resulting from a cyberattack that exposed customer data. The company's entry into financial technologies coincided with security threats.
Data Breach Discovery
Coinbase stated they expect losses between $180 million and $400 million following a cyberattack that occurred earlier this month. The company confirmed that data including customer names, email addresses, and home addresses were exposed, but login credentials were not compromised. Coinbase became aware of the breach on May 11, when they received an email from the attacker.
Employee Involvement in the Attack
The investigation revealed that contractors and employees outside of the US helped execute the attack. All involved were in support roles, not developers or executives. Coinbase has terminated all individuals suspected of involvement in the breach.
Company Response to the Incident
The company refused to pay the $20 million ransom demanded by the hacker and instead offered a reward for information leading to the identification of the attackers. Coinbase also plans to open a new support center in the US to reduce reliance on offshore personnel and tighten security measures.
The Coinbase incident highlights the growing threat of cyberattacks in the cryptocurrency industry and the importance of enhanced employee vetting.
